The going gets tough forJaiprakash Associates: Q1 loss widens

Debt laden Jaiprakash Associates has reported its Q1FY17 numbers on September 9 after market hours. Company reported widening of losses for the quarter ending June 30 to Rs 603 crore.

Total income from operations of the company on standalone basis has declined by 27.1 percent to Rs 1735 crore in Q1FY17 as against Rs 2,380.6 crore, a year ago, the infrastructure major informed in a regulatory filing to the exchange. Company's expenses too have declined to Rs 1,744.8 crore during the quarter in review from Rs 2,300 crore achieved in the corresponding quarter of FY16. Whereas, depreciation and amortisation expenses remained flat for the first quarter.

Segment wise revenue too has shown a dismal trend as revenues from all the major segments has seen a declining trend except for the Real Estate segment. On the other hand, construction segment remained the biggest drag on the company's P&L.

Competition Commission of India (CCI) in August had imposed a fine of Rs 1323.6 crore on Jaiprakash Associates Ltd., for cartelisation. The company said, “Based on the advice of the company’s counsels as well as its own assessment, the company believes it has strong reasons for successful appeal."

The debt ridden infrastructure major has been trying its best to pare down its debt since long time as the going gets tougher for JP Group as a whole.

Shares of Jaiprakash Associates closed down by 2 per cent at Rs 12.05 on NSE.