jai prakash associates pvt ltd
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JAI PRAKASH ASSOCIATES PVT LTD.
By Sujata Verma
Introduction
Founded in 1979 by Shri Jaiprakash Gaur
Headquarter – Noida, India
Also goes by JAYPEE GROUP
Diversified infrastructural industrial conglomerate
Listed on BSE & NSE
Employees over 20,000
Executive Chairman & CEO – Mr. Manoj Gaur
Executive VC – Mr. Sunil kumar Sharma
SUBSIDIARIES (17) Jaiprakash Power Venture Limited (JPVL)
Jaypee Arunachal Power Limited (JAPL)
Jaypee Power Grid Limited (JPGL)
Bhilai Jaypee Cement Limited (BJCL)
Gujarat Jaypee Cement & Infrastructural Limited (GJCIL)
Bokaro Jaypee Cement Limited (BOJCL)
Jaypee Cement Corporation (JCC)
Madhay Pradesh Jaypee Mineral Limited (MPJML)
Jaypee Infratech limited (JIL)
Jaypee Ganga Infrastructure Corporation Limited (JGICL)
Himalayan Expressway Limited (HEL)
Jaypee Sports International Limited
Sangam Power Generation Co. Ltd (SPGCL)
Pyagraj Power Generation Co. Ltd (PPGCL)
Jaypee Meghalaya Power Limited (JMPL)
Jaypee Agra Vikas Limited (JAVL)
Jaypee Fertilizers & Industries Limited (JFIL)
STREAM OF BUSINESSES
o Civil Engineering
o Power
o Cement
o Hospitality
o Integrated Township
o Information technology
o Expressway
o Sports
o Agri Business
PROJECTS EXECUTED
Jaypee Rawa Plant, M.P
1450 MW Sardar Sarovar HEP, Gujarat
Jaypee Palace Hotel & Convention Centre, Agra
Sea Court, Greater Noida
Yamuna Expressway
Buddh International Circuit, Dankaur
COMPETITORSNAME MARKET Cap. SALES TURNOVER NET PROFIT TOTAL ASSETS
Larsen 75456.64 60873.26 4910.65 37976.93
BHEL 35184.25 48424.65 6614.73 31859.30
Siemens 17095.54 12919.88 343.16 3962.60
Suzlon Energy 1416.20 1753.67 - 2989.80 11914.13
Lanco Infratech 1348.37 4741.11 13.34 7780.63
JP Associates 8121.85 13358.37 501.28 28420.59
Essar Ports 2714.95 35.40 - 38.36 2993.40
BEML 596.35 2808.91 - 79.87 3294.34
BGR Energy 754.81 3107.17 163.67 3420.63
Punj Lloyd 787.07 8723.99 19.62 8432.98
Sadbhav Eng 910.85 1811.00 74.07 1505.63
Va Tech Wabag 1271.73 1057.17 90.11 569.46
NBCC 1347.00 3198.48 207.50 950.70
IRB Infra 2620.69 2023.41 187.34 2706.63
SWOT ANALYSIS
STRENGHT
1. Largest market share in Indian Hydro-power industry
2. Third largest cement producer in India
3. Only integrated solution provider for Hydropower in India
4. Very effective communication between head office and project– high performance
5. Highly motivated professionals and skilled force
WEAKNESS
1. Sector – specific issues
2. Input cost rise and lack of pricing power
3. Contracts mainly from central and state govt subject to political influence
4. Contract payment risk – takes only projects with budgetary outlay or finances tied up
OPPORTUNITY
1. Better economic conditions in 2013-14
2. Global Industry growth of 4% in 2014
3. In-house capability for undertaking challenging assignments in the world on EPC
contract basis
4. IIFCL providing long term financing
5. Increased domestic demand of Cement
6. Road network expansion
THREATS
1. Domestic Industry slowdown to 0.6%
2. Depressed investment conditions
3. Competition from new entrants
4. Cyclical and political condition affecting business
SEGMENT WISE ANALYSIS
CEMENT & CEMENT PRODUCT
Domestic Cement production showed muted growth of 4.7% in Q2 due to
- delayed monsoon
- delayed festive season
Cement prices came under pressure due to weaker demand ( by 5-15% between Jul-Dec’12)
Increase in diesel prices in Sep 2012 (Rs 5 in diesel prices led to Rs 3 in per bag of cement)
FUTURE OUTLOOK
- Huge no. of infrastructure projects will boost demand for cement
consumption
- Growth in real estate, infrastructure and industrial construction
- Input cost rise and lack of power pricing
CONSTRUCTION Economic melt down in Nov 2008 caused Industry slowdown
In-house capability for undertaking challenging assignments anywhere in
the world on EPC basis
Increased competition
Future Outlook : Finance funding by Govt and High level of investment
ENERGY
Excessive reliance on imported crude oil
Overall energy deficit of 8.7 %
Insufficient energy resources
Capacity addition of 78,000 MW in 11th Five Year Plan
Future Outlook : Huge potential in energy sector and work through well equipped subsidiaries
EXPRESSWAYS India – one of the largest road network
60% of freight & 87.4% passenger traffic - carried by road
Easy availability, adaptability to individual needs and cost savings -Favourable factors
Rapid expansion and strengthening of the road network
Future Outlook : Company has vast experience and resources
REAL ESTATE Big driver of economy – huge multiplier effect
Rapid growth in business opportunities – building, townships, infrastructure development etc.
Inflow of foreign investment into the sector
Government’s commitment to the extensive and efficient infrastructure development
Employment generation
Future Outlook : Company has a large land bank and offerings in various segments from Luxury to mid Income to gain from rapidly growing market
HOSPITALITY
Global tourist volumes growth slow down
Domestic air travel in India has declined as compared to the previous year 2011-2012
Significant supply condition coupled with muted demand led to pricing pressure
Focus on non-room revenue segments like F&B, Meetings, Conferences, Incentives and Events
Increasing changing power and consumer aspiration
FUTURE OUTLOOK :
(a) Increase in fixed cost
(b) Many players in the industry
Segment Wise Performance (Fig. in crores)
Segment Revenue FY 2012-2013 FY 2011-2012
(a) Cement & Cement Products 6045.92 5464.96
(b) Construction 5314.31 5842.26
(c) Power 38.19 35.57
(d) Hotel/ Hospitality & Golf Course 241.41 196.54
(e) Real estate 1686.00 1416.96
(f) Investments 120.75 201.21
(g) Others 155.07 1.33
(h) Unallocated 59.98 71.77
TOTAL 13651.63 13230.60
Less : Inter-segment Revenue 139.55 112.99
Total Sales/ Income 13512.08 13117.61
Segment wise Result (Fig. in Crore)
Segment Profit (Before tax) FY 2012-13 FY 2011-12
(a) Cement & Cement Products 702.07 652.57
(b) Construction 1382.12 1605.36
(c) Power 17.52 15.61
(d) Hotel/ Hospitality & Golf Course 20.93 3.58
(e) Real estate 585.33 664.67
(f) Investments 119.50 201.21
(g) Others (3.78) (4.68)
TOTAL 2823.69 3138.32
Less :
(h) Finance costs 2011.35 1781.74
(i) Other un-allocable expenditure net off un-allocable Income
61.59 4.24
Sub-Total 2072.94 1823.98
Profit before tax 750.75 1314.34
SOME IMPORTANT RATIOS (Mar’13)
PROFITABILITY
Profit Margin 2.41%
Operating Margin 29.51%
EPS 2.2%
MANAGEMENT EFFECTIVENESS
Return on Assets 4.06%
Return on Equity 5.04%
FINANCIAL RATIOS
Debt Equity Ratio 4.45%
PE Ratio 30.1
JAL Share performance VS. BSE Indexin FY 2012-13
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