 "Lanco")
After recording profit for two consecutive quarters, Lanco Infratech today announced a reported loss of Rs 200.7 crore for the quarter ending March 31, 2016 as against a loss of Rs 563.2 crore in January-March 2015. The company managed to reduce its yearly loss too due to better performance of its EPC and construction business. It reported loss of Rs 265.6 crore last financial year as against loss of Rs 1,975.3 crore for 2014-15.
The company said it would continue to look at sale of assets and getting strategic investors for some of its businesses.
During the fourth quarter of 2015-16, it incurred a forex loss of Rs 208.21 crore. The company said it was able to run Kondapalli power plant at 30 per cent load because of gas allocation under gas pooling mechanism. Kondapalli Phase 3B (371 mw) declared commercial operation on January 9, 2016.
Amarkantak Unit 2 (300 mw) restarted power supply to Chhattisgarh from April 17, 2016. The group, however, said, “At present, the operating assets are not generating envisaged revenues on account of various factors beyond the control of the company, such as short supply of gas, pending tariff clarity and part payments from the customers is posing challenges for meeting the cash flow needs. However the Group has actively engaged in resolving each of the aspects associated with the respective revenue generating units by effectively addressing the core issues which would enable a quick turnaround in the situation and the management is confident that the efforts would result in the operating units generating positive cash flows.”
Its EPC order book consisting of power, solar and others stood at Rs 27,079 crore, 80 per cent of which is internal projects.
Lanco is present in EPC, conventional and solar power generation, coal mining and infrastructure and property development
The EPC sector and the power sector together contributed to 87 per cent of the gross revenues. EPC and construction sector contributed to 37 per cent of the gross revenue
Power sector contributed to 50 per cent of the gross revenues. The company has a total outstanding receivables of Rs 17,81.6 crore from various state electric utilities as of March 2016. “Based on internal assessment and various discussions with the customers, the management is confident of recovery of receivables,” the company said.
Better performance by operational assets helped Lanco Infratech recover from losses in the earlier quarters. The Gurgaon-based company had recorded a consolidated profit of Rs 137 crore during the quarter ending December 31, 2015 bringing down its cumulative loss for the first nine months by 95 per cent to Rs 65 crore against Rs 1,412 crore in 2014-15.
The company posted a consolidated net profit of Rs 98.98 crore in the second quarter of the current fiscal after a gap of three years.
In a statement accompanying the results, the group said approved CDR scheme and additional funding to the company and the lenders approvals of the cost overrun proposals for the projects under construction and the effort to bring strategic investors, disposal of assets, would also bring in the additional cash flows into the system.
