Lanco Infratech limited has seen its total borrowings growing by about 8 per cent during 2013-14 to ₹36,705 crore (₹33,969 crore), and its staff strength coming down by 30 per cent to 4,000 people due to slowdown impacting the pace of project execution.
Employee expensesThe company has brought down the total staff strength from 8,000 people in 2011-12 to 5,700 people in 2012-13 and in 2013-14 to 4,000 people. Consequently, employee-expenses decreased by 38 per cent at ₹352 crore as against ₹549 crore for 2012-13.
The diversified infrastructure company, which has last year secured approval for a Corporate Debt Restructure (CDR) for its holding company, has sold two major projects including Udupi thermal power plant to Adani Group entity for about ₹6,000 crore, and is seeking to divest stake in a few other projects to bring down its debt.
In its latest annual report, the company stated that the long-term debt has gone up by 16 per cent to ₹30,120 crore (₹26,004 crore). The company power projects were impacted and the EPC work took a beating due to slowdown.
Lanco Infra revenues too fell significantly during 2013-14 to ₹10,598 crore as against ₹13,888 crore for the previous financial year.
The company’s plans to raise long-term capital for infusion into the business were also affected because of investor-apathy towards investing in the infra sector both as private equity and primary market investors.