Jaiprakash Associates Q1 net zooms 300%
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B. Karthick
Jul 27, 2009, 1:19:42 AM7/27/09
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NEW DELHI: Jaiprakash Associates said the government’s renewed focus
on infrastructure would help it sustain growth momentum, while
announcing a 300% jump in net profit for the June quarter.
The company, a major player in cement and construction, posted a net
profit of Rs 491 crore, helped by an extraordinary profit of Rs 273
crore, higher cement despatches and an increase in construction
activity.
The company made an extraordinary profit of Rs 374 crore through the
sale of treasury shares which provided for Rs 101 crore losses it had
suffered on a contract for the construction work in Iraq several years
ago. JAL has merged with itself its four subsidiaries — Jaypee Hotel,
Jaypee Cement, Gujarat Anjan Cement and Jaiprakash Enterprises —
leading to the formation of treasury shares. Since a parent company
can’t hold its own shares following the merger of subsidiaries, such
shares were held by four trusts. Of the total 20.12 crore treasury
shares, 2.50 crore shares were sold in the quarter.
Net sales of the company grew 78% to Rs 2,067 crore in the quarter. An
ET poll of analysts had seen JAL’s net profit growing at 82% and sales
by 57%. “Work on hydropower projects and Yamuna expressway is going on
at a fast pace, while cement has seen a 26% growth in despatch this
quarter,” JAL executive chairman Manoj Gaur said, explaining what had
led to a surge in revenue. Revenue from cement jumped 58% this
quarter, while it went up 116% for construction. Construction
accounted for half of JAL’s revenues, while cement contributed 44%.
JAL operates 14 million tonne of cement capacity and expects to raise
it to 25 million tonne per annum by the end of current fiscal. The
company expects its cement division to generate Rs 5,500 crore of
revenue this fiscal, up from Rs 2,443 crore last year.
JAL’s construction revenues came mainly from the 165-km Yamuna
Expressway between Noida and Agra, its own 1,000-mw Karcham Wangtoo
hydropower project in Himachal Pradesh and a contract for Baglihar
project in Jammu and Kashmir.
JAL is fast expanding into the real estate space. It sold 6.8 million
sq ft in the June quarter. Revenue on account of these sales will
reflect in the books in the coming quarters after construction starts
on these new housing projects.
B.Karthick
Research Analyst
on infrastructure would help it sustain growth momentum, while
announcing a 300% jump in net profit for the June quarter.
The company, a major player in cement and construction, posted a net
profit of Rs 491 crore, helped by an extraordinary profit of Rs 273
crore, higher cement despatches and an increase in construction
activity.
The company made an extraordinary profit of Rs 374 crore through the
sale of treasury shares which provided for Rs 101 crore losses it had
suffered on a contract for the construction work in Iraq several years
ago. JAL has merged with itself its four subsidiaries — Jaypee Hotel,
Jaypee Cement, Gujarat Anjan Cement and Jaiprakash Enterprises —
leading to the formation of treasury shares. Since a parent company
can’t hold its own shares following the merger of subsidiaries, such
shares were held by four trusts. Of the total 20.12 crore treasury
shares, 2.50 crore shares were sold in the quarter.
Net sales of the company grew 78% to Rs 2,067 crore in the quarter. An
ET poll of analysts had seen JAL’s net profit growing at 82% and sales
by 57%. “Work on hydropower projects and Yamuna expressway is going on
at a fast pace, while cement has seen a 26% growth in despatch this
quarter,” JAL executive chairman Manoj Gaur said, explaining what had
led to a surge in revenue. Revenue from cement jumped 58% this
quarter, while it went up 116% for construction. Construction
accounted for half of JAL’s revenues, while cement contributed 44%.
JAL operates 14 million tonne of cement capacity and expects to raise
it to 25 million tonne per annum by the end of current fiscal. The
company expects its cement division to generate Rs 5,500 crore of
revenue this fiscal, up from Rs 2,443 crore last year.
JAL’s construction revenues came mainly from the 165-km Yamuna
Expressway between Noida and Agra, its own 1,000-mw Karcham Wangtoo
hydropower project in Himachal Pradesh and a contract for Baglihar
project in Jammu and Kashmir.
JAL is fast expanding into the real estate space. It sold 6.8 million
sq ft in the June quarter. Revenue on account of these sales will
reflect in the books in the coming quarters after construction starts
on these new housing projects.
B.Karthick
Research Analyst
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