Low capacity utilisation of power plants and a poor show by its EPC division impacted the financial performance of Lanco Infratech Ltd for the fourth quarter and for the financial year ended March 31, 2013.
The infrastructure company posted a loss of Rs 31.6 crore in Q4, against a profit of Rs 72.7 crore for the corresponding previous period. It had to take a forex hit of 16.7 crore.
Income for the fourth quarter was up 6 per cent at Rs 3,569.6 crore (Rs 3,376.2 crore same period last year).
Lower income
For the financial year ended March 31, 2013, the company posted a loss of Rs 1,073.3 crore (Rs 112 crore loss previous year). Income for the financial year was down 1 per cent at Rs 15, 259 crore ( Rs 15,396.8 crore).
T. Adibabu, Chief Operating Officer, Finance, said: “The performance of the fourth quarter and financial year ended March 31 was hit by the external environment and low fuel supplies.”
The company’s installed capacity of over 4000 MW could function at 49 per cent (less than half) capacity due to fuel issues, both coal and gas. This resulted in lower cash flows.
Gross debt is Rs 34,249 crore, Rs 2972 crore in receivables and order book of Rs 26,300 crore, which includes 83 per cent internal contracts.
The EPC revenue was down 62 per cent at Rs 974.2 crore (Rs 2562 crore), solar unit was down 26 per cent at Rs 630 crore, while property registered a growth of 131 per cent at Rs 78 crore.
DIVESTS WIND FARM
On divestment moves, which it has been working on the past few quarters, he said the perception of international investing community on the infrastructure sector has been adversely impacted.
“They are in no haste to invest in India. While talks are on, there has been delay in concluding deals,” he said.
Referring to divestment in wind and solar units, he said Lanco recently sold its 10 MW wind farm in Tirunelveli, Tamil Nadu to a spinning mill. Negotiations are on for other assets in Karnataka as also solar and hydel projects.
Lanco shares closed flat at Rs 10.14.