Mumbai: Jaypee Infratech Ltd, a part of debt-laden infrastructure conglomerate Jaypee Group, on Thursday reported a second consecutive quarter of losses, hurt by a slowdown in its real estate business.
The company posted a net loss of ₹ 20.7 crore in the quarter ended 31 December, as compared with a profit of ₹ 96.9 crore in the year ago quarter.
Standalone net income from operations fell nearly 13% to ₹ 752.21 crore from ₹ 863.19 crore in the same quarter last year. Total expenses during the quarter rose 8% to ₹ 554.67 crore.
The company had swung to a loss in the 30 September ended quarter, its first in six years.
Jaypee Infratech has developed the 165-km-long six-lane Yamuna Expressway, connecting Noida and Agra. As part of its real estate segment, the company has the right to develop 6,175 acres of land along the Yamuna Expressway.
The company does not give a break-up of revenue between its real estate business and the expressway project. The standalone results comprises of the integrated Yamuna Expressway project, which includes construction, operation and maintenance of the expressway and rights for developing land alongside the expressway.
The Jaypee Group is in talks to sell its entire holding in the expressway project, after a year-long effort to sell a partial stake in the asset failed to materialize, Mint reported in December, quoting two people familiar with the discussions.
The expressway, which became operational in August 2012, has reported lower-than-expected annual traffic and revenue. It had reported average daily traffic of 16,490 passenger car units (PCUs) for the year ended 31 March with aggregate toll collection revenue of ₹ 168.65 crore, according to Jaypee Infratech’s annual report for fiscal 2015.
Given these challenges, clinching a deal would be critical for the Jaypee Group, which is under pressure from its lenders to sell assets quickly to repay debt after it defaulted on payments. Across its three listed companies—Jaiprakash Power Ventures Ltd, Jaiprakash Associates Ltd and Jaypee Infratech Ltd—the group had debt of over ₹ 61,000 crore as on 30 September.
On Tuesday, group company Jaiprakash Power Ventures said it may need additional time, beyond 13 February, to fulfil its repayment obligations to holders of its foreign currency convertible bonds (FCCBs). This is the second time since January 2015 that the company has warned it may not be able to fulfil its repayment obligations to holders of the convertible bond.
Jaypee Infratech’s shares fell 4.94% to close at ₹ 9.43 on the BSE on Thursday. The benchmark BSE Sensex closed 3.40% lower at 22,951.83 points.