Mumbai: Jaypee Infratech Ltd, a part of debt-laden infrastructure conglomerate Jaypee Group, on Friday said it had defaulted on interest payments to lenders and reported its third straight quarterly loss, hurt by a continued slowdown in its real estate business.
The company reported a net loss of ₹ .88.76 crore in the quarter ended 31 March, compared with a profit of ₹ 96.25 crore in the year-ago period. The company had reported a loss in the September and December quarters as well.
“During the year, due to slowdown in the economy and resultant subdued demand of real estate in the NCR region, the launch and sales of new projects, including bulk land had been negatively impacted. The absorption and realizations from various projects launched by the company also dwindled due to various issues impacting the economy in general such as subdued investor towards real estate, higher interest rates, reduced confidence among home buyers...," Jaypee Infratech said in a BSE filing on Friday.
Standalone net sales in the March quarter rose 45.3% to ₹ 1196.36 crore from ₹ 823.40 crore in the same quarter last year.
The company said in the filing that it had defaulted on payment of ₹ 300 crore toward principal loan amount to Life Insurance Corporation of India (LIC) and defaulted on interest payments of ₹ 193 crore to banks.
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.
Axis Bank Ltd, a lender to Jaypee Infratech, took possession of the company’s headquarters in Noida last month. Jaypee Infratech’s stand-alone debt associated with the Yamuna Expressway stood at ₹ 8,768.54 crore as of 30 September.