Jaiprakash Associates Q1 net profit down 24.57% to Rs 139 cr

Company had reported a net profit of Rs 184.06 crore during the corresponding quarter of the last fiscal

Leading infrastructure firm Jaiprakash Associates today reported a fall of 24.57% in net profit to Rs 138.84 crore for the quarter ended June 30, 2012, mainly on account of over 21% rise in interest payments.

The Noida-based firm, which has presence in cement, construction, power and real estate, had reported a net profit of Rs 184.06 crore during the corresponding quarter of the last fiscal.

Net sales of the company was down marginally by 2.11% to Rs 2,963.57 crore during the quarter compared to Rs 2,902.30 crore of the April-June period of FY12, it said in a filing to the BSE.

During the quarter, the company's interest outgo increased by 21.28% to Rs 465.26 crore, impacting its profitability.

It added that the company is taking steps to file appeals against two court cases before the competent authority and therefore, has not made any provisions for them in the first quarter's balance sheet.

The two cases have financial impact of Rs 1,423.60 crore on the company. One of them pertains to Competition Commission of India (CCI) imposing a penalty of Rs 1,323.60 crore on the company as the CCI had found Jaiprakash Associates being part of a cartel, formed by some cement manufacturers.

The other case is related to Rs 100 crore fine imposed by the Himachal High Court on violating certain environmental norms by the company at its grinding and blending unit at Bagheri in Himachal Pradesh.

"Based on the advice of company's counsels, as well as its own assessment, the company believes it has strong reasons for successful appeal in both the cases. Accordingly, the company is taking steps to file appeal against the above orders before the appropriate authorities. Hence, no provision is considered necessary in the above financial results," it said.

Shares of the company today closed at Rs 73.35 apiece on the BSE, down 0.61% from the previous close.