JP Associates' Rs 765 crore profit in the June quarter was aided by an exceptional gain of Rs 606 crore. Meanwhile, the company's operational performance also improved in the previous quarter. Its finance cost, which was Rs 870 crore (48 per cent of its revenue) in the year ago quarter, dropped by 53 per cent to Rs 405 crore (16 per cent of its revenue) in June quarter.
The infrastructure giant has taken many steps to deleverage its balance sheet in past two years. In June this year, JP Associate closed a Rs 16,189 crore deal with UltraTech Cement to sell its six integrated cement plants and five grinding units having an aggregate capacity of 21.2 million tonnes.
On Saturday, the company further said that its board has approved a proposal for raising Rs 2,000 crore through equity related instruments for reduction of debt, meeting capital expenditure and general corporate purposes.
As of 10:50 am, JP Associates shares traded 12 per cent higher at Rs 28.40 apiece compared to Friday's close of Rs 25.35.