Jaiprakash Associates is expected to post a loss of Rs 100 crore in the quarter ended September 2014 compared to profit of Rs 67.7 crore in the year-ago period led by interest costs and depreciation exceeding EBITDA, according to the average of estimates of analysts polled by CNBC-TV18.
Net sales are seen going up by 1 percent to Rs 3,180 crore in July-September quarter from Rs 3,149 crore in same quarter last year.
Operating profit (includes other operating income) may fall 9.3 percent year-on-year to Rs 717 crore and margin may decline 260 basis points to 22.5 percent in the quarter gone by.
Expectations
Analysts feel the company may be impacted due to sequential decline in cement and construction business on seasonal nature of the business.
They expect cement volumes of 3.6 million tonnes (up 6-7 percent) and realization growth of around 7 percent Y-o-Y.
EPC division revenues may remain flat on yearly basis with flat EBIT margin while real estate segment may report normalisation of revenues, around Rs 250-300 crore as against the big drop reported in Q1.
Key things to watch out for are cement realisations and cost; asset monetisation plans; EPC division’s profitability and visibility on revenue/order book; finalisation/closure of recent deals announced; and debt reduction plans/targets.
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