Muhurat Trading: JP Associates dips 2% on poor Q2 results; rise in interest cost weighs

NEW DELHI: JP Associates Ltd slipped over 2 per cent in opening trade on ‘ Muhurat Trading’ after the leading infrastructure firm reported over 48 per cent drop in its net profit to Rs 128 crore during the quarter ended September 30, 2012, largely due to hefty increases in finance costs and muted sales.

The company had reported a net profit of Rs 248.74 crore during the corresponding quarter of the previous fiscal.

At 04:15 pm, JP Associates was pared some of its early losses and was trading 1.9 per cent lower at Rs 91.30. It has hit a low of Rs 90.20 and a high of Rs 92.60 in trade today.

Net sales of the company was up 4 per cent to Rs 2,982.54 crore during the quarter as compared Rs 2,867.24 crore of the July-September period of FY'12, the company said in a filing to the BSE.

“During the second quarter, company's finance costs increased by over 23 per cent to Rs 464.36 crore, while it reported an over 71 per cent decline in other income (which mainly consists of interest earned on deposits) to Rs 22.33 crore,” PTI reported.