Jaiprakash Associates Slumps as Q1 Loss Widens

Jaiprakash Associates shares fell as much as 9 per cent to an intraday low of Rs 10.85 on Monday as its losses widened during the April-June quarter.
  The infrastructure major reported a net loss of Rs 465 crore in the June quarter, up from Rs 81 crore reported in the corresponding quarter of the last fiscal on account of lower income and higher finance costs.
  Total income of Jaiprakash Associates fell 21 per cent annually to Rs 2,393 crore, against Rs 3,030 crore in the year-ago period.
  Interest costs of the company increased 14 per cent annually to Rs 899 crore against Rs 790 crore last year. Jaiprakash Associates has been struggling for years to service its debt. Its Ebitda, or gross profit, of Rs 322 crore was below its quarterly interest liability of Rs 899 crore in the June quarter, implying that the company is facing hardship to service its debt from its operational cash flow.
  The infra major has been making efforts to bring down its debt by selling assets.
  Shares of Jaiprakash Associates closed 7.14 per cent lower at Rs 11.05 apiece, compared to 0.46 per cent fall in the broader Nifty. The stock has corrected over 80 per cent in last one year compared to nearly 14 per cent gain in the broader Nifty.