JP Associates Falls 7% As Q1 Loss Widens
Jaiprakash Associates shares fell over 7 per cent to Rs 54.30 on Wednesday as its losses in the June quarter widened more than estimated.
The company reported a net loss of Rs 80.6 crore as against estimates (NDTV analyst poll) of Rs 32 crore loss. Its sales declined 9 per cent year-on-year (y-o-y) to Rs 2,994 crore as against estimates of Rs 3,416 crore.
Analysts say JP Associates' loss of Rs 80.6 crore also included tax write back of Rs 120 crore. If this tax write back impact is removed from its net then its net loss will be more than Rs 200 crore which is worrying the investors.
JP Associates has huge debt on its balance sheet. Its interest cost in Q1 came in at Rs 789 crore whereas its ebitda (earnings before interest, tax, depreciation, amortisation) came in at Rs 791 crore. This implies that JP Associates' ebitda is barely sufficient to cover its interest cost.
Cement volume of JP Associates fell 3 per cent y-o-y as against industry growth of 9.5 per cent. The company reported its lowest revenue from the real estate segment since FY 2009.
As of 11.55 a.m. JP Associates shares traded 6.8 per cent lower at Rs 54.95 underperforming the Nifty which was up 0.18 per cent.
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