BackLanco Infratech posts `99 crore net profit in September quarter
Lanco posted a 96% rise in gross revenues in the second quarter in comparison with last year
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Hyderabad: After a gap of three years, Lanco Infratech Ltd has posted a net profit of ₹ 99 crore for the three months ended 30 September, against a loss of ₹ 527.48 crore in the corresponding period last year.
The company saw a near four fold rise (366%) in engineering, procurement and construction (EPC) revenues, the restarting of halted power projects of around 4,036 megawatts (MW), and tax and tariff reimbursements during the fiscal second quarter.
It posted a 96% rise in gross revenues in the second quarter in comparison with last year. The gross revenue stood at ₹ 3,493 crore in the September quarter, up from ₹ 1,783 crore a year ago.
“In the last 4-5 months, there has been good mobilization of work at projects and the momentum is likely to continue in the next two quarters as well. The company will now also aggressively look at bagging more external EPC projects to add to the existing portfolio. In fact, in the next few months, we bid for road, smart city and airport projects," said T. Adi Babu, chief operating officer-finance at Lanco Infratech.
Total expenses went down in the second quarter to ₹ 1,693 crore from ₹ 2,083 crore in the same quarter a year ago. The adjusted Ebitda increased 300% year-on-year to ₹ 1,181 crore, against ₹ 295 crore. Ebitda or earnings before interest, tax, depreciation and amortization, is operating profit.
The company has a debt of ₹ 35,000 crore, which will touch ₹ 45,000 crore in the next two years.
“Apart from monetizing assets at fair value, we will focus on execution of projects. The current projects which got on track will be self-sufficient and able to service debt," Babu said.
Lanco Infratech now has orders worth ₹ 27,000 crore, which it says will be executed in the next three years.
In the second quarter, Kondapalli Phase II and III power plants won bids under the gas pooling mechanism for operating at 50% plant load factor from October to March. Anpara power project received the Uttar Pradesh Electricity Regulatory Commission’s tariff order to compensate for the changes in the request for proposal and power purchase agreement conditions with respect to coal supply and power purchase payments.
Also, in the quarter, the Supreme Court (SC) directed South Eastern Coalfields to supply coal and Power Grid Corp. of India Ltd to provide a transmission corridor to Amarkantak’s 300MW Unit II, the company said.
In another SC order, Lanco Infratech received a reimbursement of ₹ 175 crore for Kondapalli Unit I from Andhra Pradesh utilities for 11 years.
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