Result Review: Lanco Infratech

Result Review: Lanco Infratech

Lanco’s topline on a standalone basis grew by 68.4% y-o-y to Rs638.8 crore (Rs379.4 crore) in Q2FY09.

This growth was on account of increase in the contribution from the construction segment that grew 70% to Rs632.6 crore (Rs371.5 crore).

The other two segments, power and infrastructure development that are much smaller segments, contributed Rs3.7 crore (Rs3.1 crore) and Rs2.5 crore (Rs4.8 crore) respectively.

On a consolidated basis, the company reported a turnover of Rs1,278.9 crore (Rs600.6 crore), resulting in a growth of 129.3% on y-o-y basis.

On the operating front, the company made a profit of Rs100.2 crore (Rs46.7 crore) on standalone basis, despite a sharp increase in the prices of raw materials. Margins also witnessed expansion of 336bp to 15.7% (12.3%).

On a consolidated basis, the company’s EBITDA grew by a robust 36.7% and stood at Rs159 crore (Rs116.3 crore), resulting in operating margins of 12.4%.

Lanco clocked a standalone net profit of Rs39.9 crore (Rs34.3 crore) indicating a growth of 16.3% primarily impacted on account of a sharp rise in the interest costs, which has increased by nearly 350% y-o-y.

However, the consolidated net profit for the quarter declined by 12.6% to Rs70 crore (Rs80.2 crore). We Maintain a BUY on the stock.