Jaiprakash Associates
Cluster: Ugly Duckling
Recommendation: Buy
Price target: Rs291
Current market price: Rs246
Price target revised
Result highlights
- Jaiprakash Associates Ltd's (JAL) net revenues grew by 12% year on year (yoy) in Q1FY2006 to Rs817 crore.
- Its cement revenues grew by 25% driven by a volume growth of 23% and a realisation growth of 2% during the quarter.
- The construction revenues grew by 5.6% yoy to Rs548 crore driven by a strong order backlog of Rs6,800 crore as on June 30, 2005.
- The operating profit margin (OPM) rose by 100 basis points to 19% during the quarter. The growth was driven by the strong volume growth in the cement business and savings in power costs.
- The profit before tax (PBT) increased to Rs96 crore, up 19% quarter on quarter (qoq), while the profit after tax (PAT) increased to Rs54 crore. The PAT saw a marginal growth of 4% primarily because of a higher tax outgo.
- During the quarter the company sold off its 36.6% stake in Jaiprakash Hydro Power Ltd (JHPL) and realised a profit of Rs360 crore.