Jaiprakash Associates - March 2013 Results Preview - Motilal Oswal

- In 4QFY13E, we expect Jaiprakash Associates (JPA) to post revenue of INR39.5b, EBITDA of INR8.8b and net profit of INR1.6b respectively; not comparable YoY due to cement demerger.

- In the cement business, we have assumed a realization of INR4,164/ton v/s INR3,971/ton sequentially. We have estimated a volume of 4.2mton v/s 3.7mton in the previous quarter.

- EPC division's revenue is expected at INR14.7b (down 16.7% YoY) and EBIT margin of 18.7% v/s 23.9% YoY.

- Company is in the process to disinvest cement units in Gujarat and Andhra Pradesh. Funds mobilized through monetization would be used to deleverage.

- We expect JPA to post standalone net profit of INR6b in FY13E (down 40.6% YoY) and INR9.6b in FY14E (up 58% YoY). The stock trades at a reported PER of 12.4x FY15E.

Source : Equity Bulls

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