Jaiprakash Associates shares close 14.4% higher after surprise Q1 profit
Jaiprakash Associates on Monday closed 14.4% higher, hitting a nearly three-year high, after the company reported profit for the June quarter
Mumbai: Shares of debt-ridden Jaiprakash Associates Ltd on Monday closed 14.4% higher after the company reported profit for the June quarter after 12 consecutive quarter losses, which came as a surprise.
The stock hit a high of Rs30.40, a level last seen on 25 November 2014. The stock closed at Rs29 on the BSE, up 14.40% from its previous close, while India’s benchmark Sensex index fell 0.16% to closed at 32,273.67 points.
Its group companies were also trading higher. Jaypee Infratech Ltd and Jaiprakash Power Ventures Ltd rose 5% each.
On Saturday, JP Associates reported a net profit of Rs764.99 crore in the June quarter against a net loss of Rs866.65 crore a year ago due to lower interest cost and higher revenues. Net sales rose 42.32% from a year ago to Rs2,585.44 crore. Interest cost fell 53.45% to Rs404.79 crore.
The board also approved raising funds up to Rs2,000 crore via equity-related instruments for meeting its capital expenditure and to reduce debt.
Investors hope that the prospect of quick debt restructuring may provide some respite to its lenders and JP Group stocks. So far this year, JP Associates has surged 259.36%, Jaiprakash Power Ventures Ltd 90% and Jaypee Infratech Ltd gained 193.2%.
In June, Ultratech Cement Ltd completed Rs16,189 crore JP Associate’s six integrated cement plants and five grinding units, which have a capacity of 21.2 million tonnes, giving respite to the banks and JP Group stocks.
As of September 2016, Japirakash Associates has a total debt of Rs20,735.97 crore, while Jaypee Infratech has a debt of Rs7,673.74 crore. As of March 2017, Jaiprakash Power Venture has a total debt of Rs9,608.70 crore.
Editor's Picks »
- France’s Engie appoints Rothschild to find a buyer for Indian solar biz
- Going into 2019, has brand Modi lost some of its sheen?
- Sun Pharma’s cancer injection from Halol plant gets USFDA nod
- A click moment for us was raising ₹100 crore in seed round to chase our dreams: Manish Lunia
- HDFC mutual fund arm to launch its ₹2,800 crore initial share sale next week
- Fund managers slashing allocations to equities in emerging markets, shows BAML survey
- ICICI Lombard tightens grip on profitability in a lean growth quarter
- TCNS Clothing IPO: Valuations capture the upsides adequately
- Nightmare of Indian Accounting Standard 115 comes to haunt firms in the real estate sector
- What is driving the optimism in stocks of paint companies?