Infrastructure conglomerate Jaiprakash Associates today reported 86.72 per cent decline in Q2 FY’11 standalone net profit to Rs 115.52 crore against the corresponding quarter last year.
It had registered a profit of Rs 870.19 crore during the same period in the previous year due to gains from sale of treasury stocks.
“The main reason for dipped net (profit) is that last year in the same quarter,we had got Rs 941.76 crore out of selling in treasury stocks. During the corresponding quarter this fiscal,there is no gain on the exceptional items,” company’s Chief Financial Officer Rahul Kumar said.
Kumar,who was elevated on October 31,2010 as a Director in the firm,said that had there been no gains on the exceptional items in the same quarter last year,Jaiprakash Associates would have been PBT (profit before tax) positive in July-September quarter of the current fiscal.
Jaiprakash Associates,the flagship company of the Jaypee Group,reported Rs 606.25 crore profit from operations before other income,interest and exceptional items against Rs 410.32 crore in the corresponding quarter last fiscal.
The net sales of the group,which is active in construction and engineering along with interests in power,hospitality,cement,real estate and expressways,increased to Rs 2,993.26 crore from Rs 1,843.78 crore in the same quarter last fiscal.
Meanwhile,the Jaypee Group patriarch Jaiprakash Gaur has stepped down from the Directorship of the company from October 31,2010 because of his old age.
“He has become old and it was becoming difficult for him to deal with the day-to-day affairs of the company. However,he is still the guiding force and will continue to guide us in the future,” Kumar said.