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Result Update Q4FY18 published on 19th May 2018
Jaiprakash Associates Limited (JAL) is a part of the Jaypee group founded by Jaiprakash Gaur. The Jaypee Group is a conglomerate based in Noida, India. The company is diversified in Engineering & Construction, Power, Cement, Real Estate, hospitality, IT, Sports & Education.
First cut Analysis: (Q4FY2018)
1. Revenue Growth:Rs.1606.6Cr
2. PAT: Rs(78)Cr
3. P/E: -0.76
4. ROCE (avg): -0.75%
5. ROE (avg) : -147.39%
6. Dividend Yield: 0.00%
Expectation and Growth for Future:
1. JAL has appealed against the National company law tribunal order and wants the company to revoke their 760 acre land to its subsidiary Jaypee Infratech which was termed as “fraudulent” and “undervalued” since this order will increase the asset value of Jaypee Infratech as the land value in market will be around Rs.1500Cr to Rs.2000Cr
2. Supreme Court has also ordered JAL on May 16, 2018 to deposit an additional of Rs.1000Cr by June 15, 2018 to provide refunds to the hassled home buyers.
1. The Net sales of the company increased by a total of 44.92% q-o-q to Rs.1606.06Cr in Q4FY18 and slumped by 44.90% y-o-y to Rs.7761.33Cr for FY18 and said its not comparable since the company sold major part of its cement business to Birla Group firm Ultratech cement.
2. The operating profits of the company increased by 37.22% q-o-q to Rs.192.9Cr in Q4FY18 and dropped by 49.87% y-o-y to Rs.821Cr for FY18 since the raw materials consumed during the Q4FY2018 increased by almost 100.92% and therefore the operating expenses increased over all 37% which led to the steep fall in operating profit for the Q4FY2018 but still the expenses were lower.
3. The Net profit of the company fell by 47.33% q-o-q to Rs.(78)Cr in Q4FY18 and by 77.75% y-o-y to Rs.(1937.3)Cr for FY18 this decrease also cant compared since the company has disinvested a lot of assets including cement plants, in order to reduce the company debt.
4. The company is facing a lot of issue due to the significant delays in delivery of real estate projects and therefore the company has been ordered to deposit Rs.1000Cr to the hassled home buyers by Supreme Court.
Quarterly and Yearly Result Snapshot