Jaypee Infratech Q1 loss widens to Rs 2.98 bn despite rise in income

Bankruptcy-bound Jaypee Infratech on Tuesday reported a net loss of Rs 2.98 billion for the first quarter this fiscal.

Its net loss stood at Rs 447.8 million in the year-ago period, the company said in a regulatory filing.

Total income from operations, however, rose to Rs 3.55 billion during April-June quarter compared to Rs 3.2 billion in the corresponding period previous year.

The standalone result of the company comprise of only one segment 'Yamuna Expressway Project' which is an integrated project that inter-alia includes construction, operation and maintenance of Yamuna Expressway and rights for land development of 25 million square metres along the expressway.

Debt-ridden Jaypee Infratech has been under the corporate insolvency resolution process (CIRP) since August 9, 2017 under the provisions of the Insolvency and Bankruptcy Code (IBC) 2016.

The National Company Law Tribunal (NCLT) in August last year admitted IDBI Bank's plea to initiate insolvency proceedings and appointed Anuj Jain as Interim Resolution Professional (IRP) to mange the company's business.

Jaypee Infratech is facing bankruptcy proceedings after it defaulted on Rs 5.26 billion loan to IDBI.

Later, the IRP invited bids from investors interested in acquiring Jaypee Infratech and completing the stuck real estate projects in Noida and Greater Noida.

Consequently, Lakshadweep, a joint venture between the Sudhir Valia-led Suraksha Asset Reconstruction Company and Mumbai-based Dosti Realty, emerged as a front-runner to acquire Jaypee Infratech with Rs 73.5 billion bid.

But, lenders rejected this bid as they found it inadequate. The lenders did not consider the bid of Jaypee's promoter Manoj Gaur who gave an offer of over Rs 100 billion to revive the group company.