Jaiprakash Associates (JP Associates) has registered 23% fall in standalone sales to Rs 2024.02 crore for the quarter ended December 2015. Further with 500 bps contraction in operating profit margin, the operating profit declined by sharp 46% to Rs 241.89 crore. The other income was down by 82% to Rs 7.14 crore, the interest cost was up by 7% to Rs 940.38 crore and depreciation was lower by 9% to Rs 220.26 crore. With the operating profit not sufficient to cover the interest and depreciation cost, it was a loss of Rs 911.61 crore at PBT (before EO) level compared to a loss of Rs 632.28 crore in the corresponding previous period. EO was an expense of Rs 17.15 crore compared to an income of Rs 481.61 crore in the corresponding previous period. Thus the loss has widened to Rs 928.76 crore at PBT after EO level compared to a loss of Rs 150.67 crore in the corresponding previous period. The taxation was a write back of RS 98.12 crore compared to a write back of Rs 13.64 crore in the corresponding previous period. Thus at PAT level it was a loss of Rs 830.64 crore compared to a loss of Rs 137.03 crore in the corresponding previous period.
- Downside in revenue is largely due as both the major business of the company register fall in sales. Segment revenue of cement division was down by 16% (to Rs 1183.22 crore or 58% of sales) and that of construction was down by sharp 47% (to Rs 485.23 crore or 24% of sales). While depleting order book as well as delays in burnout of order in hand is the reason for lower construction sales, weak cement demand as well as divestment of cement capacity continues to hurt the sales of cement division. Similarly the segment revenue of Hospitality & Golf was down by 10% to Rs 69.53 crore (or 3% of sales). However the segment revenue of real estate and power was up by 57% and 543% respectively to Rs 212.96 crore and Rs 65.17 crore. The segment revenue of others was down by 76% to Rs 23.45 crore.
- EBIT declined by 85% to Rs 34.26 crore. But for strong show in real estate the EBIT would have been in red given segment loss registered by both cement and hospitality divisions as well as lower profit in construction division. The cement business the divestment of which is underway has reported a segment loss of Rs 16.79 crore compared to a profit of Rs 4.62 crore in the corresponding previous period. Similarly the hospitality division registered a segment loss of Rs 37.36 crore compared to a segment loss of Rs 33.88 crore in the corresponding previous period. Hit by lower sales as well as 2150 bps contraction in segment margin, the segment profit of constriction division declined sharply by 96% to Rs 8.06 crore. The investment division booked a segment loss of Rs 0.46 crore compared to a profit of Rs 5.31 crore n the corresponding previous period. However aided by higher sales and 480 bps expansion in segment margin to 34.2%, the segment profit of real estate was up by 83% to Rs 72.78 crore. On higher sales the segment profit of power was Rs 15.16 crore compared to a segment loss of Rs 6.02 crore in the corresponding previous period.
- Loss before tax include Rs 95.95 crore (Rs 106.89 crore in Q3FY15) from discontinuing operations namely cement plants with an aggregate grinding capacity of 4.9 MTPA and 180 MW CPP at Bela and Sidhi in MP, 1.5 MTPA cement grinding unit at Panipat, Haryana and 49 MW wind power plants to UltraTech Cements.
Nine month performance
Standalone sales were lower by 19% to Rs 6887.66 crore but with 1120 bps contraction in OPM, the operating profit was lower by 58% to Rs 833.67 crore. After accounting for lower other income, higher interest and lower depreciation cost the PBT before EO was a loss of Rs 2632.46 crore compared to a loss of Rs 1166.95 crore in the corresponding previous period. EO income was lower by 90% to Rs 49.84 crore. Thus the loss at PBT after EO level increased by 277% to Rs 2582.62 crore. Taxation was a write back of Rs 730.02 crore compared to a write back of Rs 264.00 crore in the corresponding previous period. Thus the PAT was a loss of Rs 1852.60 crore compared to a profit of Rs 420.67 crore in the corresponding previous period.
Other developments
Figures for the quarter/ nine month ended December 2014 had been reworked pursuant to the Scheme of amalgamation of Jaypee Sports International, a wholly owned subsidiary of the company, with the company sanctioned by the H'ble High Court of Allahabad u/s 391/394 of the companies Act, 1956. Pursuant to the sanctioning of the scheme Jaypee Sports International (Transferor Company) stands merged as a going concern with the company (Transferee Company) from the Appointed Date April 1, 2014.
The Hon'ble High Court of Judicature, Allahabad has on 6th August, 2015 sanctioned the Scheme of Arrangement between the Company and UllraTech Cement Limited [UTCL] for the proposed transfer of two of its Cement Plants with an aggregate grinding capacity of 4.9 Mn TPA and 180 MW Captive Thermal Plants at Bela and Sidhi in Madhya Pradesh to UTCL at an enterprise value of Rs 5325 crore. The Scheme is also subject to sanction by Hon'ble Bombay High Court for which the petition has already been filed by UTCL.
Equity shares numbering 189316082 held by the four Trusts, of which the Company is the sole beneficiary, have been pledged for securing the loans obtained by the Company.
During quarter ended December 2015 the company has received a Letter of Intent from Jaypee Energy (Kutehr) for execution of works of 240 MW Kutehr Hydro Electric Project in the state of HP for a contract price of Rs 1760.58 crore.
The stock hovers around Rs 7.18.
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