Jaiprakash Associates reports 1Q growth, India

Jaiprakash Associates reports 1Q growth, India
23 July 2010

Jaiprakash Associates Limited (JAL) has announced growth in its first quarter FY11 numbers primarily led by good performance in cement and engineering businesses.

Total revenue for the first quarter ended June 30, 2010 stood at INR 3214.47 crore registering a growth of 51.85%. Net profit for the same period stood at INR515.98 crore up 5.05% from INR491.18 crore in the same period last fiscal. EBITDA for the period stood at Rs 685.69 crore up 15.93%.  EBITDA and net profit margins for the period stood at 21.60% and 16.26% respectively.

Commenting on the performance of the group,  Manoj Gaur, Executive Chairman, JAL, said: “Our results are in-line with the targets that we set at the start of the fiscal. I am happy to share that our results have shown an upward trend. This shows the efficiency and strong execution skills of the company. With our expanded capacities in cement production coming on-stream we have bucked the industry trend and reported a phenomenal growth of nearly 62% on a YoY basis in our cement dispatches including clinker sale in the first quarter of the current financial year.”
Increases in total revenue was also driven by growth in the engineering and construction business of JAL which grew by around 36.7% to INR1480.15 crore (1QFY11) in comparison to INR1082.80 crore (1QFY10) where the contribution from this segment is 46.05% of the company’s total revenue.

The other prominent segment was cement and cement products which registered more than 47.08% growth in revenue from INR 905.13 crore (1Q1FY10) to INR1331.30 crore (Q1FY 11). The contribution from cement division in of the total revenue is 41.42%.
The Jaypee Group’s total Cement installed capacity is 21.3Mta (includes 2.2Mta capacity in joint venture with SAIL). With a captive power capacity of 227MW and economies of scale, the company has been able to control the production cost which has been reflected in a higher margins in cement business.
Published under Cement News