Jaiprakash Associates (JPASSOCIAT) posted a mixed set of numbers with decent performance on the revenue front while earnings were lower than our estimate owing to lower-than-expected operating performance and high interest cost. The decent performance on the revenue front was owing to construction revenue surprise. However, high input cost pressure led to a decline in the blended EBITDAM.
Jaiprakash Associates, the flagship company of the Jaypee Group, was set up in 1958 by Jai Prakash Gaur, who started as a small-time construction contractor in Kota, Rajasthan. Over the years, JAL has transformed itself into a large infrastructure conglomerate in India. The company is present across the following sectors:
- Cement (the third largest group, ~33mt capacity in FY2012)
- Power (the argest private sector hydro-electric power utility, ~1,700MW operational capacity)
- Real estate (one of the largest land banks in NCR, with over 695mn sq ft area
- Engineering and construction (E&C; the largest company in the hydro-electric power sector)
- Expressways/highways (Yamuna Expressway is one of the biggest toll projects)
These are some extracts from the report published by Angel Broking Ltd. on JP Associates Ltd’s 2QFY2014 Result update and Angel Broking is Neutral on JP ASSOCIATE, you can also find the report by Angel broking below.