JP Associates expects 30% net profit growth and 15% revenue growth in FY09. It expects clearance of JP Power IPO in March. The Taj Expressway Project will yield 3 billion square feet of land for development, stated Gaur.
Excerpts from CNBC-TV18’s exclusive interview with Manoj Gaur:
Q: How is 2008 shaping up in terms of businesses across all verticals, like real estate, power, infrastructure, cement, etc?
A: The current financial year is very important for us. Cement is contributing almost 60% of our revenues in this financial year and is doing well. With all the cement operations being kept in our power plant, the cost of power is the lowest in the industry. The market is doing well and supporting the price line. So, we are expecting a good financial year to end as on March 8.
From this quarter onwards, with Jaypee Green at Greater Noida, we are going to recognize the revenue from real estate also. So, that would mean the bottom line is also going to show much improved performance for the current financial year. We hope that this company would be able to register a healthy increase in revenue of over 15% and profitability is expected to grow at least 30%.
Q: Let us look at power. What is the time-table that you are looking at in terms of an IPO? What are you looking at in terms of growth for your power projects in the next 12 months?
A: JP Power Venture Limited is the group’s power company, which is already running India’s largest 400mw power station at Uttarakhand for almost 18 months. This power station is earning verified emission reductions, or VERs, to the tune of USD 1.3 million every year. This means almost 4-5% increase in ROE and this company is already implementing a 1,000 mw thermal power plant at Madhya Pradesh, which will be commissioned sometime in 2012, which is already having an exclusive coal block.
So, we have filed the DRHP with Sebi in the month of January. We expect to get clearance in March. Given the track record of the group and the potential of this company, we feel that we will be in a position to come out with an IPO sometime during the end of March.
Q: Across all your lines of businesses, what is the total capital outlay that you will have in the next 18-24 months? In addition to the funding that you have already approved and the stock exchanges know of, are there any more funding pipelines in the anvil over the next 18-24 months?
A: As far as Jaiprakash Ltd is concerned, it is in engineering, construction, cement and real estate. So, it is definitely investing in cement. The entire cement expansion financing has been tied up. We have planned a GDR and hope that we would be able to complete that addition sometime early in the next financial year.
The IPO of JP Power Venture is for funding power projects because we are looking at an investment of almost Rs 30,000 crore in power. We would be progressively completing various power projects which would give almost 5,500mw to the nation.
Q: Would you look at a possible listing of JP Infratech as well within the next one year?
A: That is something which will be seriously looked into because it is a company with great potential. We feel that we are JP Limited because of the visionary leadership of our founder Jai Prakash. We are fortunate that we are going to construct two of the most important expressways of the country- Taj Expressway on the bank of Yamuna river and Ganga Expressway, on the bank of the river Ganga.
So, it would make sense with the track record of constructing real estate and completing infrastructure projects in time.
Link to the article: http://www.moneycontrol.com/india/news/ipo-upcoming-issues/jp-power-expects-sebi-clearance-for-ipo-in-march/326643
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