Power projects, trading boost Lanco Infratech profit by 96%

Power projects, trading boost Lanco Infratech profit by 96%
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First Published: Wed, Jul 29 2009. 09 55 PM IST

Updated: Wed, Jul 29 2009. 09 55 PM IST
Hyderabad: The captive power projects it is developing for its subsidiaries and trading helped Lanco Infratech Ltd overcome a steep fall in its property development business in the first quarter and post a 96% growth in net profit.
Profit rose to Rs115.85 crore from Rs59.1 crore in the same year-ago period. Revenue at Rs2,195.4 crore was up 140%.
A Reuters poll of brokerages had forecast Lanco’s net profit for the quarter at Rs90.07 crore.
“The construction and EPC (engineering, procurement and construction) revenues saw growth mainly on account of peak expenditure on three key power projects,” chief financial officer J. Suresh Kumar said, referring to contracts from Udupi Power Corp. Ltd in Karnataka, Lanco Anpara Power Pvt. Ltd in Uttar Pradesh and Lanco Amarkantak Power Pvt. Ltd in Chhattisgarh. The three firms are subsidiaries of Lanco Infratech. “The company expects to complete all the power projects currently under construction in the next 12-18 months,” he added.
The firm’s capital expenditure on the three power projects was Rs7,693.2 crore, and Rs9,587.1 crore overall on all its power projects under construction. As on 30 June, its construction and EPC order book stood at Rs9,467 crore.
Revenue in the construction and EPC segment rose 179% year-on-year to Rs1,446.3 crore, and 141% to Rs1,012.6 crore at its power business. Revenue in the property development segment fell 62% to Rs17.8 crore because of the downturn in the sector.
Kumar attributed the revenue growth in Lanco Infratech’s power segment to more generation on availability of gas from Reliance Industries Ltd for its 366MW Kondapally power project in Andhra Pradesh, and to revenues from power trading from Rs122 crore to Rs690.1 crore. Earnings before interest, tax, depreciation and amortization, a measure of core operations, rose 58% to Rs276.9 crore.
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First Published: Wed, Jul 29 2009. 09 55 PM IST