Jaiprakash Q4 net jumps 83%, sees strong earnings per share

Jaiprakash Q4 net jumps 83%, sees strong earnings per share
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First Published: Mon, Apr 27 2009. 07 02 PM IST
Updated: Mon, Apr 27 2009. 07 02 PM IST
New Delhi: India’s diversified Jaiprakash Associates said on Monday its quarterly profit jumped 83% and forecast annual profit could rise by two-thirds, sending its shares to a seven-month closing high.
Jaiprakash, which has interests in hydropower construction, real estate, cement and hospitality, expects earnings per share (EPS) in the fiscal year to March 2010 of Rs11 to 12.5 from 7.48 in 2008/09, executive chairman Manoj Gaur told reporters.
Revenue should grow more than 70% in 2009/10, he said, helped by growth in all three business segments - engineering, cement and real estate.
“All three lines of our business should do well,” Gaur said.
Jaiprakash, which has net debt of about Rs100 billion ($2 billion), will sell Rs40 billion of non-convertible debentures, which Gaur said would be used to fund power and cement projects.
Shares in Jaiprakash, which the market values at about $3 billion, closed 3.6% higher at Rs130.30, their best close since 19 September last year, on a BSE index that edged up 0.4%.
The shares have risen 57% so far this year to be one of the best performers in the main index. The benchmark BSE index is up nearly 18% on the year.
New Delhi-based Jaiprakash, the country’s largest builder of dams, said net profit rose to Rs3.85 billion in its fiscal fourth quarter ended 31 March, from 2.10 billion a year earlier.
Revenue for the quarter rose to Rs21.52 billion from 13.45 billion.
Gaur said he expected cement prices to remain stable in the next six months and that the market had the ability to “easily absorb” the 14 million tonnes of cement he planned to sell this year even though there is talk of overcapacity in the sector.
Jaiprakash plans to buy back $100 million worth foreign currency convertible bonds (FCCBs) during 2009/10, he said.
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First Published: Mon, Apr 27 2009. 07 02 PM IST