NEW DELHI (INDIA): Jaiprakash Associates reported widening of standalone net loss to Rs 1,095.02 crore for the third quarter ended December of 2016-17.
The company’s net loss in corresponding period of last fiscal was at Rs 827.26 crore.
“Total income has decreased to Rs 1,648.87 crore during the quarter as against Rs 2,121.59 crore for same period year ago,” JP Associates said in a regulatory filing.
The dismal performance of the company is mainly because of losses from cement, construction, sports events and real estate businesses.
Its Board of Directors during the quarter under review approved scheme of arrangement between the company and UltraTech Cement for sale of part of its cement business, including that of its 100 per cent subsidiary Jaypee Cement Corporation.
Besides, the company said the Board at the meeting held today authorised the Finance Committee to “consider and approve the realignment of remaining debt of the company subject to consents and approvals required including that from shareholders and lenders of the company.
The company has been reeling under substantial financial stress and has defaulted on loans and other payments running over multi-crore rupees, besides overdue interest on loans.
Sale of its cement business to Kumarmangalam owned Birla Group is touted as the biggest deals for the sector in the country and it is expected to fetch the JP group Rs 15,900 crore.
Besides, the power business was sold off to JSW Energy in early 2016 for Rs 3,500 crore.
Source: Press Trust of India