Real estate company Jaiprakash Associates’ performance in the fourth quarter ended March 2010 was adversely affected by rising operational costs. Rise in construction and manufacturing costs resulted in around 11 percentage point decline in its stand-alone operating profit margin to 25.6%.
This cost as a percentage of total operational earning grew by nearly 900 basis points on a year on year (Y-O-Y) basis to 63.4% in the past quarter. The company's net sales went up 57.2% y-o-y to Rs. 33.47 billion.
The infrastructure company India is involved in the prime Jaypee Infratech’s Yamuna Expressway Project. Senior company officials said that the company’s construction division was involved in group projects. These projects give lower profit margins.
As a result, the profit margin of the key construction division fell to 19.8% during the period. It had an adverse impact on the overall operating margins of the company.
Meanwhile, the company's cement division, earnings grew nearly 11.8% on a y-o-y basis at Rs. 36.82 per tonne in the last quarter. This was possible due to a robust demand conditions out of government-funded infrastructure projects in North India, plus a revival in the housing sector.
However, the situation in southern and western India was different as players grappled with a fall in realizations in the fourth quarter.
JP's cement dispatches stood at 3.35 million tonnes, a growth of 52.3%.
Nevertheless, the company's overall core net profit declined 38.5% year-on-year to Rs 2.46 billion in the last quarter.
This cost as a percentage of total operational earning grew by nearly 900 basis points on a year on year (Y-O-Y) basis to 63.4% in the past quarter. The company's net sales went up 57.2% y-o-y to Rs. 33.47 billion.
The infrastructure company India is involved in the prime Jaypee Infratech’s Yamuna Expressway Project. Senior company officials said that the company’s construction division was involved in group projects. These projects give lower profit margins.
As a result, the profit margin of the key construction division fell to 19.8% during the period. It had an adverse impact on the overall operating margins of the company.
Meanwhile, the company's cement division, earnings grew nearly 11.8% on a y-o-y basis at Rs. 36.82 per tonne in the last quarter. This was possible due to a robust demand conditions out of government-funded infrastructure projects in North India, plus a revival in the housing sector.
However, the situation in southern and western India was different as players grappled with a fall in realizations in the fourth quarter.
JP's cement dispatches stood at 3.35 million tonnes, a growth of 52.3%.
Nevertheless, the company's overall core net profit declined 38.5% year-on-year to Rs 2.46 billion in the last quarter.
No comments:
Post a Comment