Saturday, September 01, 2012

THERE’S MORE TO JAYPEE THAN EXPRESSWAYS

While there is a lot of hue and cry about jaypee infratech’s yamuna expressway project, the group’s flagship company jaypee associates ltd is climbing up the ladder with its diversified approach, says Deepak Ranjan Patra

After a small stint in the State Irrigation Department of Uttar Pradesh, when engineer Jaiprakash Gaur decided to go ahead with his entrepreneurial instincts, he would have barely dreamt of a company with a market capitalisation of over `200 billion. But that’s the reality today. While Jaiprakash Associates Ltd (JAL), the flagship company of Jaypee Group, alone is valued at `231 billion (as on August 31, 2010), the combined market value of all the listed group companies (JAL, JPV and Jaypee Infratech) stands at a whopping `475 billion. Moreover, with a net profit of `17.08 billion for the financial year 2009-10, JAL is now the 41st most profitable company in B&E Power 100 list, justifying what Manoj Gaur, Chairman, JAL likes to say about the group – “We are currently on a high-growth path.”

Interestingly, the particular fiscal in consideration is also a milestone for the company as for the first time its turnover crossed `100 billion mark this year. Visibly delighted with the results Gaur avers, “With the overall performance of all the businesses of the group, the roadmap that we have laid at the start of the fiscal has helped us achieve an all round growth across all sectors.” Certainly, with a lot of politics going on around the Jaypee Infratech’s land acquisitions issues (related to the Greater Noida-Agra Yamuna Expressway), the group at present is in news for some wrong reasons. Still, the success of JAL as a diversified company (with interest in various sectors including cement, engineering and construction, real estate and power) is spot on with a mind-boggling 72.53% rise in its turnover and 87.47% increase in earnings per share after extraordinary items.

In achieving such a feat in FY 2009-10, JAL’s cement business played the most critical role for the company. With a 40% rise in production (from 7.63 million MT in FY’08-09 to 10.69 million MT) and 52% increase in production of clinker (from 5.55 million MT to 8.44 million MT), JAL’s cement division managed to push its total turnover by 61.85% up to `37.44 billion in the last fiscal. And this represented 36% of the company’s total turnover for the year. In fact, as shared by Manoj Gaur, carrying on the good work further, the particular division of the company witnessed a growth of around 60% (in terms of dispatches) in Q1 of the current fiscal as compared to industry average of just 10-12%. Considering the company’s foresight and “timely capacity augmentation and capacity creation” as the key, Sunny Gaur, MD, JAL tells B&E, “With commissioning of almost 12 MnTPA in last 12 months and India’s cement consumption holding at 9% growth, our assessment of requirement of cement in India has been proved right and that is reflected in the satisfactory & healthy growth of 47% in the last quarter.” That certainly explains why is the company the country’s third largest cement manufacturer today.



 
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