Sun, 25 May 2014 10:45:00 GMT | By PTI

Lanco Infra posts Rs 584 crore Q4 loss, revenues dip 23%

For the financial year ended March 31, company posted loss of Rs 2,273.9 crore versus Rs 1,073.3 crore for year ago period


Lanco Infra posts Rs 584 crore Q4 loss, revenues dip 23% (© Reuters)

Hyderabad: Lanco Infratech Limited has posted a huge loss of Rs 584 crore for the fourth quarter ended March 31, 2014 as against a loss of Rs 31.6 crore for the corresponding period last year.

Impacted by power and EPC division performance, the company revenue for the fourth quarter ended March 31, 2014 declined by 23 per cent at Rs 2,762.3 crore as against Rs 3,569.6 crore for the same period previous financial year.

For the financial year ended March 31, 2014, the infrastructure and construction major posted a big loss of Rs 2,273.9 crore versus Rs 1,073.3 crore for the year ago period. The revenue for the year was down by 29 per cent at Rs 10,875 crore as against Rs 15,296 crore for the previous financial year.

The company management has attributed the losses for the fourth quarter and financial year to delays in execution of contracts and increase in costs and price escalation. This was also due to claims of service providers, subcontractors and upward revision of estimated cost. It has also made provision for expected losses on some ongoing projects and additional costs in recently completed and discontinued projects.

The EPC revenue for FY 2014 was down 48 per cent at Rs 2,255.6 crore (Rs 4,345 crore). The Griffin coal mine revenue was also down 65 per cent at Rs 145.4 core (Rs 411.4 crore).

In the power sector, it has outstanding receivables of Rs 2,823 crore from various electricity utilities as of March 2014. Lanco posted a forex loss of Rs 370.5 crore as against a loss of Rs 77.5 crore previous fiscal.

The adjusted net worth of the company stood at Rs 4,158 crore and it has 4,000 employees on rolls.

Of the company’s installed capacity of 3,924 mw, the plant load factor was at 61 per cent as the 366 mw gas based plant in Andhra and 300 mw Amarkantak II had zero production due to lack of gas and coal supplies. The Kondapalli unit I of 368 mw also functioned at low PLF of 51 per cent due to inadequate gas.

The performance of the property division too was impacted due to slowdown. While two of its completed highway projects have contributed to revenues through toll collection, the Aligarh-Kanpur (283 km) project is awaiting nod for construction.

The Uttarakhand floods have impacted the 76 mw hydel project Lanco Mandakini and the insurance claims are being processed.

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