Lanco Infra fiscal net down at Rs 446 cr

Lanco Infratech has reported a 2.72 per cent decline in its consolidated net profit at Rs 446.07 crore for the year ended March 31, 2011 due to adjustment in profit on transaction with subsidiaries and associate companies.

The company had reported a consolidated net profit of Rs 458.55 crore in 2009-10 fiscal.

“As per accounting standards, you need to eliminate inter-company profits but it is a non-cash elimination. We have reported a cash profit of over Rs 1,300 crore during the year, so it is not a cause for concern,” the Lanco Chief Financial Officer, Mr J. Suresh Kumar, told PTI.

He added that the gross operating income has gone up by 18 per cent before making adjustments on transactions with subsidiaries and associates at Rs 11,044.51 crore during the year. In 2009-10, the gross revenue stood at Rs 9,483.23 crore.

He further said that revenue from power sector was the leading growth factor for the company which grew by 37 per cent at Rs 4,945.2 crore.

“This is going to increase further during the current year as we plan to add about 1,500 MW new capacity to our power business this year,” Mr Kumar said, adding that Lanco will have a total power generating capacity of 4,800 MW by March, 2012.

The company will be commissioning the second unit of 600-MW capacity at its Anpara power project in Uttar Pradesh by September, while another 600-MW capacity at Udupi is expected to be commissioned by December.

Besides this, the company is also looking at tying up funds of about Rs 25,000 crore for the expansion of its power business, the CFO said.

About engineering, procurement and constructions (EPC) business, Mr Kumar said that due to delays in getting regulatory approvals and some technical issues, EPC projects to the tune of about Rs 600 crore have to be postponed.

“Due to these reasons, revenues from EPC segment have been flat at Rs 5,961.7 crore in 2010-11,” he said, adding that the company has an order book of over Rs 30,000 crore.