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anco Infratech returned to profits after a gap of three years on the back of several favourable developments, including gas and coal supplies for its plants, and a four-fold sequential jump in its EPC revenues.
The diversified infrastructure company declared a profit of ₹99 crore for the second quarter ended September 30, 2015, against a loss of ₹528 crore in the corresponding quarter last year.
Gross revenue for the second quarter increased by 44 per cent to ₹3,493 crore from ₹2,444 crore in the corresponding quarter of the previous year.
T Adibabu, Chief Operating Officer, told BusinessLine that the company’s performance has improved across EPC business, power projects and the overall business is poised to look up. “We hope that as various last mile issues relating to our projects get resolved, we would be able to perform better going forward. Having sorted out issues with lenders, we will go out more aggressively and complete EPC contracts including that of Tamil Nadu and Mahagenco.”
Four of the step-down subsidiaries — Amarkantak, Babandh, Vidarbha and Mandakini completed the documentation for respective cost overrun financial closure of their under construction projects. Of these, the first three are 2 x 660 MW coal-based power plants (each), while Mandakini is setting up a 76-MW Hydro Power project.
In the 500-MW Teesta Hydro power project, the consortium of lenders has decided to convert part of their loans in the project into equity under the Strategic Debt Restructuring mechanism.
“With the commissioning of these plants, which are already under execution after the restart recently, the company will have a consolidated operating power capacity of around 8000 MW by FY 2018,” he explained.
The EPC order book of Lanco covering power and solar projects was at ₹27,722 crore, majority of which to be executed within the next three years. “Going forward, we will concentrate on EPC contracts where the financial commitment is low,” he said.
The company received a number of favourable orders in Lanco Kondapalli Power Ltd (LKPL) from the Supreme Court entitling for refund of ₹175 crore. LKPL was successful in winning the bids for supply of gas under the Centre’s gas pooling mechanism for operating 1108 MW. The 1200-MW Lanco Anpara also received a favourable order from Uttar Pradesh regulator for coal supply and power purchase payments.
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