JP Associates net up 15%, splits stock

NEW DELHI: Led by growing demand and improved realisation in cement, Jaiprakash Associates (JAL) posted a 15% increase in net profit at Rs 104 crore for the quarter ended September 30. Total income in the same period rose 14% from Rs 808 crore to Rs 922 crore this year.

The company’s board also decided on Monday to split company’s equity share of Rs 10 into 5 shares of Rs 2 each.“Better realisation in cement and our continued focus on efficiencies have been the key drivers for growth,” says JAL director (corporate) Suren Jain. JAL, whose revenue mainly comes from cement and construction, now depends entirely on its captive units for power requirements. This is the first year to see the full impact of captive power.

Mr Jain said the second half would throw up more impressive figures. “Historically, we have done better in the second half because of better cement demand and perked up construction activity,” says Mr Jain.

Moreover, the company, which has an existing production capacity of 7 million tonne per annum, would add two million tonnes in the next two quarters. However, “any significant impact of it in terms of revenue may be felt only in the next fiscal,” says Mr Jain.