Annual Report for the Year 2012-13 - Jaypee Group

or more. In 2012-13, the achievement under various phases
of the National Highways Development Project (NHDP) up
to December 2012 has been about 1,605 km and projects
have been awarded for a total length of about 878 km.
Future Outlook in Expressways
Your Company having a vast experience & resources and
depending upon the interest shown by the Government
would expand its business further in Roads & Expressways
at suitable times.
V. REAL ESTATE
VI.
The real estate sector is a critical sector of our economy.
It has a huge multiplier effect on the economy and
therefore, is a big driver of economic growth. It has been
instrumental in changing the face of India from being a
under developed country towards accelerating its way to
a developed country, that is evidenced from the state of
art infrastructure development, buildings, townships etc.
across urban and semi urban areas.
Besides acting as a catalyst for sustainable and inclusive
economic growth, this sector has emerged as the 5 th
largest destination of foreign investment. Though the
global economic slowdown had its effect on this sector
as well slowing the pace of growth, the Indian real estate
sector is breaking new ground. Rapid growth in business
opportunities, inflow of foreign investment into the sector
and the entry of second generation entrepreneurs are
largely the reasons for future growth in this sector. With
the Government’s commitment to the extensive and
efficient infrastructure development, the Indian real estate
sector is likely to stay ahead providing ample opportunities
for employment generation and sustenance of the other
ancillary industries.
The Group continues to focus on the development of
Integrated Townships alongside the Expressway to synergize
the benefits of this unique revenue model.
Future Outlook in Real Estate
Your Company having a large land bank and offering in
various segments, from Luxury to mid income, is all set to
gain from the rapidly growing real estate market.
HOSPITALITY
ICRA Limited, in its report on Indian Hotel Industry February,
2013 has given following key overview for the FY 2012-13:
• Global tourist volumes growth slows down: During the
2012, global tourist volumes are estimated to have grown
by a modest 3-4% as compared to 5.9% during previous
year i.e. 2011. United Nations World Tourist Organization
(UNWTO) projects a moderated 2-4% growth for year
2013 in view of the continued global uncertainties is key
outbound tourist countries in Europe.
• Foreign Tourist arrivals (FTAs) to India grew by a muted
5.4% during the year 2012, slowing down considerably
during the last year.
• Since May-12, domestic air travel in India has been declining;
for Year Turnover Detail (YTD) November-12 the domestic
Revenue Passenger Kilometers (RPKM) has declined 2.2%
y-o-y, against a 15.9% growth during the same period in
the preceding fiscal
Significant supply addition expected across key markets in
India during 2012-13, particularly in Chennai and the NCR.
Supply addition in 2013-14 also expected to be robust,
which coupled with muted demand has led to continued
pricing pressure in the next fiscal.
The Indian sub-continent continues to face pressure on
operational metrics with supply additions in several pockets
outpacing demand growth. During the current fiscal, pan
India Average Room Revenue (ARRs) have consistently
hit new lows (seasonally adjusted) every month while
occupancies, barring some pick up in October-12, has been
lower than the previous fiscal.
In the wake of continued business weakness hotels are
focusing on non-room revenue segments like Food &
beverage (F&B) and Meetings, Incentives, Conferences and
Events (MICE), to mitigate the impact. The F&B segment has
been witnessing healthy demand on the back of increasing
purchasing power and changing aspirations of consumers
– willing to pay for new cuisines and experiences. This has
resulted in increase in specialty restaurants and fine dining
options in the premium properties, which includes opening
of branches of international restaurants in some properties.
Future Outlook in Hospitality
Industry hits new lows during Quarter 2 of financial
year 2012-13 with falling Revenue per available rooms
(RevPARs) and escalating power costs eroding operating
margins which coupled with increase in fixed costs (interest
and depreciation) resulted in many players in the industry
posting net losses.
REVIEW OF FINANCIAL PERFORMANCE
The key indicators of the financial performance of the Company
for the year 2012-13 were as under:
S.
ITEM FY 2012-13 FY 2011-12
NO.
` CR. ` CR.
1 Total Revenues 13,512.08 13,117.61
2 Profit Before Exceptional Items, 741.45 1,308.25
Prior Period Items & Tax
3 EBIDTA 3478.93 3,704.14
4 Profit Before Tax 750.75 1,314.34
5 Net Profit After Tax 501.28 1,026.38
6 Basic EPS after extra-ordinary
items (in ` Per share) 2.34 4.83
45