Lanco Infratech Results low with Slowdown

Lanco Infratech is into EPC, property development and power – generation and trading. Lanco’s power portfolio includes an operating capacity of 519 MW and additional capacities under various stages of implementation aggregating to more than 8,000 MW. The company is developing 163 Kms of National Highways on BOT basis and has emerged as winner for developing a Rs.8000 crore transhipment container port in the state of Kerala.

For the second quarter ended 30th September 2008, on a YoY, gross revenues were up by 107% at Rs.1290.60 crore. EBITDA was up by 70% at Rs.197.90 crore. Then the dream run ended. It posted an exceptional forex loss of Rs.25.36 crore and this pulled down the PAT, which was down 8% at Rs.51.56 crore. But for the MTM forex loss, PAT would have actually been higher by 17% at Rs.56.30 crore.

By the end of the current fiscal year it is expected that that the operational power generation capacity will increase by around 30% and will be more than 800 MW. The construction activity for the development of around 4000 MW is progressing generally as per schedule. The first unit of 300 MW at Amarkantak, which was expected to start operating in October is currently undergoing commissioning activities and it will be commissioned soon. The small Hydro projects are expected to start commissioning from next quarter. The construction activities at Udupi, Kondapalli and Anpara are progressing as per schedule.

The order book of the company stood at Rs.12060.31 crore at the end of Q2FY09. Due to the slowdown, the company has faced cancellation of orders on its realty projects. With commodity prices all around easing up, the company feels that in the coming months, the effects of the slowdown would be offset by the reduction in its procurement costs. It thus expects to maintain its margins in the remaining two quarters. Yet, an eye has to be kept on the forex front, as the company import’s a fairly large amount of capital goods for its power projects.
thanks LANCO INFRA