Jaiprakash Associates, the construction and cement major has registered 9% fall in standalone sales to Rs 2452.31 crore for the quarter ended September 2015. But eventually the loss at bottom-line has widened to Rs 537.75 crore compared to a loss of Rs 169.18 crore in the corresponding previous period. Widening of loss for the quarter was largely due to 1490 bps contraction in OPM, lower other income, higher interest and depreciation. But for higher tax write back the loss at bottom-line might be much higher than reported.

• Operational income was lower by just 9% to Rs 2452.31 crore with downside coming from both of the major businesses i.e. Cement and Construction division. The segment revenue of Cement was lower by 3% to Rs 1356.08 crore (or 55% of total income) but that of Construction was down by 49% to Rs 543.38 crore (or 22% of total income). Similarly the hospitality business revenue was lower by 2% to Rs 52.39 crore. But Power more than doubled (up 114%) to Rs 80.50 crore. That of real estate was higher by whopping 264% (to Rs 411.29 crore or 17% of sales). Segment revenue of others was lower by 45% to Rs 33.62 crore.

• Hurt by lower sales and lower segment margin, the segment profit of cement business was down by sharp 94% to Rs 6.31 crore. Segment margin of cement business contracted by sharp 680 bps to 0.5%. Similarly hurt by lower sales and whopping 4160 bps contraction in segment margin, the segment profit of construction business was lower by 99% to Rs 4.42 crore. Spurred by higher sales and higher margin the segment profit of power was up by 220% to Rs 16.12 crore. The segment profit of real estate was up by 199% to Rs 118.65 crore spurred largely by higher sales as its segment margin contract by 620 bps to 28.8%. Segment loss of hospitality business reduced to Rs 55.73 crore (compared to RS 62.28 crore in the corresponding previous period) on lower sales. On nil sales the segment profit of investments was a loss of Rs 0.46 crore compared to a profit of Rs 28.26 crore in the corresponding previous period.
• Other income was lower by 72% to Rs 13.12 crore. The interest cost and depreciation was higher by 15% (to Rs 973.69 crore) and 2% (to Rs 224.22 crore). Thus the PBT before EO was a loss of Rs 889.06 crore compared to a loss of Rs 294.64 crore in the corresponding previous period. The EO income was an expense of Rs 0.17 crore compared to an income of Rs 1.10 crore in the corresponding previous period. Thus the PBT after EO was a loss of Rs 889.23 crore compared to a loss of Rs 293.54 crore in the corresponding previous period.
• Taxation was a write back of Rs 351.48 crore, a rise of 183%. Thus the PAT was a loss of Rs 537.75 crore compared to a loss of Rs 169.18 crore in the corresponding previous period.

Half yearly performance

Sale for the half year was lower by 17% to Rs 4863.64 crore. As OPM contract to 12.2% from 26.2% in the corresponding previous period, the operating profit was lower by 61% to Rs 591.78 crore. Eventually at PAT level it was a loss of Rs 1021.96 crore compared to a loss of Rs 283.64 crore in the corresponding previous period.

Latest developments

The Hon'ble High Court of Judicature, Allahabad has on August 06, 2015 sanctioned the Scheme of Arrangement between the Company and UltraTech Cement [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.

The Scheme for amalgamation of Jaypee Sports International Limited, [wholly owned subsidiary of the Company], with the Company has been sanctioned by the Hon'ble High Court of Judicature at Allahabad u/s Section 391/394 of the Companies Act, 1956 on September 14, 2015 and is effective from October 16, 2015. Pursuant to the sanctioning of the scheme Jaypee Sports International Limited (Transferor Company) engaged in business of development of Special Development Zone with sports as core activity and development of Real Estate stands merged as going concern with the Company (Transferee Company). Since the appointed date is April 01, 2014, post approval of the Scheme by Hon'ble High Court of Judicature at Allahabad, the figures of the previous financial period/year have been restated.

During the quarter the Company has been awarded the contract for development of PACKAGE III from Km. 46.500 to Km. 71.000 of the Six Lane Eastern Peripheral Expressway (NH-NE II) in the State of Uttar Pradesh on EPC mode for a contract price of Rs 747 crore by the National Highway Authority of India.

During the quarter, Board of Directors of the Company in their meeting held on September 30, 2015 had approved the divestment of Company's Wind Power Plants (WPP) in Maharashtra and Gujarat, having aggregate capacity of 49 MW, on slump sale basis. The Company has since executed the binding agreements in this regard for a total slump sale consideration of Rs 183.75 crore. The transaction is subject to the statutory approvals.

Equity Shares numbering 189,316,882 held by the four Trusts, of which the Company is the sole beneficiary, have been pledged for securing the loans obtained by the Company.

The stock hovers around Rs 13.13.