The ‘elimination' provision according to the Indian accounting standards brought down the net profit of Lanco Infratech Ltd by 93 per cent for the first quarter ended June 30. Its net profit stood at Rs 13.8 crore against Rs 194.7 crore in the year ago corresponding period.
According to the accounting standard, companies are required to eliminate the revenue which they earned by providing services to their subsidiaries.
Before elimination, net profit was down 9 per cent at Rs 235 crore as against Rs 257.4 crore for the corresponding quarter last year.
The company said the revenue from the EPC division was up 64 per cent from Rs 1,055.8 crore to Rs 1,729.9 crore. However, revenues from power was down 25 per cent at Rs 1,077 crore from Rs 1,434.4 crore due to lower revenue in power trading and lower realisation from merchant capacities.
Operating revenues after elimination was down 8 per cent at Rs 1,969.1 crore as against Rs 2,135.9 crore for the corresponding quarter last year
Before elimination, operating revenues were up 22 per cent at Rs 3,152 crore (Rs 2,561 crore). EBIDTA (Earnings Before Interest, Taxes, Depreciation and Amortisation) was up 18 per cent at Rs 745.5 crore (Rs 632.2 crore). Cash profit was up one per cent at Rs 366.7 crore (Rs 361.1 crore).