Standalone revenues during the quarter ended March 2012 grew 3% to Rs 4062.14 crore on the back of 8% growth in revenues from cement to Rs 1686.72 crore (41% of total) despite 1% decline in revenues from construction to Rs 1770.59 crore (43% of total) and 6% decline in revenues from real estate business to Rs 560.38 crore (14% of total). Hotel hospitality and golf course (1% of revenues) grew by 8% to Rs 55.77 crore.

OPM improved by 380bps to 25.1% due to decline in materials costs and direct costs as % of sales and operating profits thus grew 21% to Rs 1019.39 crore. Other income reduced to one-forth and Interest costs and depreciation charges rose significantly which led to 19% fall in PBT to Rs 312.31 crore but PAT fell 7% to Rs 283.81 crore as the company claimed deferred tax asset which reduced the Tax rate from 22% to 9%.

FY12 revenues de-grew 2% to Rs 12853.12 crore as revenues from cement were flat at Rs 5464.96 crore (41% of total), revenues construction declined 3% to Rs 5842.26 crore (44% of total) and revenues from real estate business declined 17% to Rs 1416.96 crore (11% of total). OPM however, improved by 330bps to 26.8% which led to 12% growth in operating profits to Rs 3439.65 crore. Net profits de-grew 12% to Rs 1026.38 crore mainly due to increase in interest costs and an exceptional gain in the prior period. However, tax rate declined from 33% to 22%.

Quarterly performance

For the Quarter ended March 2012, the Company' sales grew by 3% to Rs 4062.14 crore. The construction segment led the poor performance with revenues declining by 1% to Rs 1770.59 crore, contributing 43% to the total sales and for the real estate revenues de-grew by 6% to Rs 560.38 crore, forming 14% of total revenues. However, revenues from the cement segment grew by 8/% to Rs 1686.72 crore forming 41% of the sales.

OPM rose by 380 basis points to 25.1% resulting in operating profit growth of 21% to Rs 1019.39 crore. Other income de-grew by 75% to Rs 31.74 crore.

PBIT margin of cement worsened by 238bps to 12.61% which led to 10% fall in PBIT to Rs 212.75 crore, forming 24% of total PBIT and PBIT margins for the construction segment improved from 12.26% to 23.9% which led to 94% growth in PBIT to Rs 423.23 crore, which formed 47% of the total PBIT. PBIT margins for the Real estate segment were down by 466bps to 43.67% which led to 15% fall in PBIT to Rs 244.71 crore (27% of PBIT). Hotel and hospitality' PBIT declined by 65% to Rs 3 crore. Wind power' loss at PBIT reduced from Rs 2.99 crore to loss of Rs 0.78 crore.

Interest expense increased by 35% to Rs 580 crore and depreciation charges too increased by 9% to Rs 163.75 crore. PBT before prior period adjustments thus fell by 21% to Rs 307.38 crore. Prior period adjustment was a credit of Rs 4.93 crore compared to debit of Rs 0.34 crore.

Tax rate declined from 22% to 9% as the company claimed deferred tax asset as against deferred liability last period due to which PAT de-grew by 7% to Rs 283.81 crore.

FY12 performance

The top-line for the full year under review fell 2% to Rs 12853.12 crore during FY 2012 as compared to FY 2011.

OPM during the year was up by 330 bps to 26.8% due to lower direct (470bps fall to 32.8%) as well as material costs (50bps fall to 22.2%). Thus the absolute operating profit rose by 12% to Rs 3439.65 crore. Other income increase by 17% to Rs 264.49 and led to the PBIDT rise of 12% to Rs 3704.14 crore. PBDT rose only 4% to Rs 1922.4 crore as the interest cost jumped by 22% to Rs 1781.74 crore during the year under review. The depreciation allowance increased 1% to Rs 614.15 crore. Thus the PBT before PPA grew by 5% to Rs 1308.25 crore during the period under review.

Prior period gain increased from Rs 0.84 crore to Rs 6.09 crore. There was an exceptional gain of nil against Rs 513.16 crore in FY11, garnered from the net income of sale of treasury stocks and prior period adjustment which led to a 25% fall in PBT after EO to Rs 1314.34 crore. After providing for the tax expenses at tax rate of 22% (1100bps decline) the standalone net profit fell 12% to Rs 1026.38 crore.

Shareholding Pattern

As of March 31, 2012, Promoters hold 46.76% (46.83% at end of sequential quarter), FII's hold 19.73% (18.07% at end of sequential quarter), DII's hold 13.73% (12.89% at end of sequential quarter), and others hold 19.78% (22.21% at end of sequential quarter).

The scrip was trading at Rs 60.4 on 31^st May 2012 on BSE.

Jai prakash Associates: Results

Jai Prakash Associates: Segmental results