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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