JP Associates, Century Text may affect most from penalty

Tulsian told CNBC-TV18, “Pure on the fundamental basis the two cement companies which come in the mind are the worst affected, one will be the JP Associates because of the penalty of Rs 1,324 crore, because if you see their annual profit I am not presuming that this penalty will not get paid or maybe this temporary relief will come in the form of stay order from the COMPAT.”

He further added, “If strictly go by the orders Rs 1,324 crore penalty on JP Associates against their estimated annual profit of Rs 650 crore and second is the Century Textile Rs 274 crore against their estimated, I am not going by their FY12 working which had a PAT of about Rs 25 crore. So these two companies will be most severely affected and to my surprise the Shree Cement has been a surprise exclusion from the order which I am unable to understand that in spite of they also having a capacity of 10 million tonnes the company has been excluded. So maybe some positive view will shift on Shree Cement, but these two companies JP Associates and Century Textiles will take the maximum beating.”