Jaiprakash Associates: Q4FY14 Result Analysis

Jaiprakash Associates has reported a topline of Rs 3465.88 crore for the quarter ended 31 March, 2014 as compared to Rs 3908.26 crore for the quarter ended 31 March, 2013. Coming on the segment-wise performance, the revenue from the construction segment has plunged by 4.5% on yearly basis, whereas the revenue from cement and cement products has remained at par on yearly basis for the quarter ended 31 March, 2014.

The EBITDA of the company stood at Rs 935.11 crore, reporting a jump of around 4.8% on yearly basis during Q4FY14. The EBITDA margin during the current quarter surged by 414 basis points as compared to the corresponding quarter of previous year. On yearly basis, the margin improved due to reduction in direct construction expenses (down by 24.8%) and other expenses (down by 11%) during Q4FY14.

The company has reported a net profit of Rs 100.42 crore for the quarter ended 31 March, 2014 as compared to Rs 123.5 crore for the quarter ended 31 March, 2013. The reduction in tax (down by 222%) has helped the company to post decent profit despite reduction in sales during Q4FY14. The reduction in tax was due to excess provision and deferred tax which stood at a total of Rs 73 crore for the quarter ended 31 March, 2014. The net profit margin during this quarter has plunged by 26 basis points. This was due to increase in interest expenses (up by 777 basis points) which stood at 21.82% as proportionate to sales on an yearly basis during Q4FY14.

On the valuation front, the scrip of the company is trading at a price to earnings (P/E) of 38.8x. The scrip opened at Rs 72.9 and closed at Rs 72.60 on BSE today, down by 0.41% from its previous close.