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MARKET EYE-Jaiprakash Associates down after earnings disappoint
February 12, 2013 / 5:13 AM / 5 years ago

MARKET EYE-Jaiprakash Associates down after earnings disappoint

* Shares in Jaiprakash Associates Ltd fell as much as
4.2 percent, a day after the company reported a 64.2 percent
fall in Oct-Dec net profit to 1.11 billion rupees.
 
* The company reported a 17 percent rise in cement volumes to
3.7 million metric tonnes for the quarter, Barclays said in a
note. However, EBITDA realisation came down 19 percent over the
period due to higher fuel and logistics costs, mitigating the
advantage of higher cement volumes.
* Finance costs rose 15 percent although earnings were supported
by high quarterly real-estate sales, it added. 
* "Near-term stock performance would be driven by JPA's ability
to resolve perception around debt service capability," the note
said, adding it expects clarity on sale of Gujarat cement plants
to ease near-term debt concerns.

 (manoj.dharra@thomsonreuters.com;
manoj.dharra.thomsonreuters.com@reuters.net)

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