JP Announces 292% Increase In Net Profit

Published: July 30, 2009 at 6:20 PM | Author: Administrator
News Source: July 29, 2009 - Indian Realty News

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Beating slowdown in the economy, Jaiprakash Associates Ltd (JAL), a leading infrastructure conglomerate, announced on Sunday a 292% rise in its net profit to Rs 491.2 crore in the first quarter (April-June) of 2009-10 as against Rs 125.2 crore in the same period last year. The company’s turnover went up 77% to Rs 2,117 crore in Q1 from Rs 1,194.7 crore last year. During the quarter, turnover from the cement division registered a growth of 57% to Rs 905 crore as against Rs 577 crore in same period last year. Cement dispatches rose 30% to 24.1 lakh tone as against 18.46 lakh tone in same quarter last year.

Turnover of the engineering division, including wind power, grew by 114% to Rs 1,084 crore from Rs 506 crore in Q1 of last fiscal. Despite slowdown in the real estate sector, JAL managed to increase its earnings from realty by 26% to Rs 95 crore from Rs 75 crore in the same period last year. While cement division acounted for 43% of the total revenue, engineering division contributed 51%, real estate (4%) and the hotel business (2%). The board of directors approved ESOPs of 1.25 crore equity shares of Rs 2 each at a price of Rs 60 per share for employees of the company and its subsidiaries.

JAL executive chairman Manoj Gaur said, "All the businesses of the company achieved a growth over the corresponding quarter of the previous year as well as over the immediate preceding quarter and we expect the same trend to continue in the coming quarters as well." After capacity expansion in the cement business, he said, the company expects to register strong growth both in terms of revenue and profit in the coming quarters, while in the real estate business, the growth and profitability will be driven by new offerings.