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Lanco Infratech Limited has posted a loss of Rs 441 crore for the first quarter ended June 30, against a profit of Rs 13.8 crore for the corresponding quarter last year.
The loss was attributed to high interest costs and foreign exchange loss of Rs 230 crore. The interest cost increased significantly to Rs 539 crore from Rs 232 crore. However, net sales increased to Rs 3,495 crore, up 87 per cent from Rs 1,867 crore.
Lanco Infratech’s Chief Operating Officer, Finance, T. Adi Babu, said: “The results were disappointing as the external factors contributed to the loss. Tough market conditions, poor fuel supplies for plants, high interest rates ruling at over 2 basis points and high dollar versus rupee rates caused this loss.”
“Poor gas supply for power plants and low coal supply for thermal projects, in spite of coal linkages impacted the overall performance. However, we are confident that things will get better as new capacity addition and road projects add to cash flows,” he said.
The company expects to commission the Udupi unit II after the line is commissioned shortly.
DEBT
On the rising debt, Adi Babu said: “About Rs. 16,000 crore debt was for projects now under execution. So this is not a big worry. We are seeking to reduce debt and are likely to rope in a strategic investor at the holding and special purpose vehicle level.”
“We are looking at raising about $750 million. But market conditions are tough now,” he said.
The Griffin coal project in Australia logged lower exports. But the company expects to increase output by early next year,” he said.
The company commands an order book of Rs 25,100 crore. Lanco Infra shares closed the day’s trading down 3.25 per cent at Rs 12.50.
>rishikumar.vundi@thehindu.co.in
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