Jaiprakash Associates - Q4 FY2013 Result Review - Angel Broking

For 4QFY2013, Jaiprakash Associates posted mixed set of numbers with subdue performance on revenue however earnings were lower than our estimate owing to lower-than-expected operating performance. On the top-line front, company's reported a revenue of Rs. 3,907cr in 4QFY2013 (against our estimate of Rs. 3,365cr), indicating a decline of 3.8% yoy. The real estate segment had growth of 14.3% on yoy basis however cement and construction segment revenues declined by 3.0% and 13.4% respectively on yoy basis. Blended EBITDA margins decline by 222bp/424bp on a yoy/qoq basis to 22.9% and was below our expectation of 26.4%. This was mainly due to lower construction margins which came in at 19.1% (a decline of 478bps yoy). Interest cost increased by 3.1% on sequential basis to Rs. 549cr basis and was higher than our estimate of Rs. 534cr. Depreciation cost came in at Rs. 191cr in 4QFY13 a jump of 16.5%/5.2% on yoy/qoq basis. On the bottomline front, company reported a PAT of Rs. 124cr a decline of 56.5% yoy owing to lower-than-expected operating operating and high interest cost.
The stock rating is currently under review.

Source : Equity Bulls

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