Jaiprakash associates posts significant loss, revenue decline amid insolvency process

Jaiprakash Associates Limited reported a gross total revenue of INR 3,406.89 crores for the financial year ended March 31, 2025, a decrease from INR 3,753.39 crores in the previous fiscal year. The company posted a net loss of INR (4,933.36) crores, compared to a net loss of INR (1,536.26) crores in FY2023-24. This significant loss was primarily driven by exceptional items totaling INR (3,787.01) crores, including write-offs of trade receivables and non-current investments, and provisions for impairment on property, plant, and equipment.

The company's corporate insolvency resolution process (CIRP) commenced on June 3, 2024, leading to the suspension of the board of directors' powers and the appointment of an interim resolution professional. Five resolution plans have been received and are currently under evaluation. Basic and diluted earnings per share for continuing operations stood at INR (20.10) for FY2024-25, worsening from INR (6.26) in the prior year.

Segment-wise performance reveals a decline in cement revenue to INR 171.64 crores (from INR 633.37 crores in FY2023-24) and construction revenue to INR 1,604.89 crores (from INR 2,115.86 crores). Notably, the company is not recommending any dividend for the financial year 2024-25 due to cash flow stress and the ongoing CIRP.