Workers at the construction site (Photographer: Sanjit Das/Bloomberg)

Jaiprakash Associates’ First Quarter Net Loss Widens To Rs 603 Crore

Jaiprakash Associates reported widening of its standalone net loss to Rs 603 crore for the quarter ending June 2016. The company had posted a net loss of Rs 482.4 crore in the corresponding period of the previous fiscal.

Total income of the company on standalone basis declined 27.1 percent to Rs 1,735 crore in the quarter under review from Rs 2,380.6 crore, a year ago, the infrastructure firm said in a regulatory filing to the BSE. Its expenses too declined to Rs 1,744.8 crore during the quarter under review from Rs 2,300 crore.

Competition Commission in August had imposed a fine of Rs 1,323.6 crore on Jaiprakash Associates Ltd. for cartelisation.

The company said, “Based on the advice of the company’s counsels as well as its own assessment, the company believes it has strong reasons for successful appeal. Accordingly, the company is taking steps to file appeal against the above order before the appropriate authorities.”

Jaypee Group has on a consolidated basis failed to repay Rs 2,905.6 crore in principal amount to banks and another Rs 1,558.93 crore in interest payments. Jaiprakash Associates, the group’s flagship company, saw its net loss widening to Rs 3,345 crore in the last fiscal on a consolidated basis. In 2014-15, the same stood at Rs 1,735.10 crore.

Earlier this year, in one of the biggest deals in the domestic cement industry, debt-ridden Jaypee Group had announced part sale of its cement business to Kumarmangalam Birla-led Ultratech for Rs 15,900 crore. The transaction will see Ultratech become possibly the biggest cement player in the country after gaining an overall capacity of 21.2 million tonne per annum from Jaypee’s cement plants in five states and a grinding unit in Uttar Pradesh.