1. JAI PRAKASH ASSOCIATES PVT
LTD.
By Sujata Verma

2. 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

3. 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)

4. 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

5. PROJECTS EXECUTED

6. Jaypee Rawa Plant, M.P

7. 1450 MW Sardar Sarovar HEP, Gujarat

8. Jaypee Palace Hotel & Convention Centre, Agra

9. Sea Court, Greater Noida

10. Yamuna Expressway

11. Buddh International Circuit, Dankaur

12. COMPETITORS
NAME 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

13. SWOT ANALYSIS

14. 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

15. SEGMENT WISE ANALYSIS

16. 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

17. 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

18. 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

19. 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

20. 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

21. 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

22. 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

23. JAL Share performance VS. BSE Index
in FY 2012-13
0
20
40
60
80
100
120
140 Apr-12
May-12
Jun-12
Jul-12
Aug-12
Sep-12
Oct-12
Nov-12
Dec-12
Jan-13
Feb-13
Mar-13
Relativevaluesto100
JAL
BSE Sensex