Lanco Infra posts profit after 12 consecutive quarters of losses

Lanco Infra Tech is an integrated Infrastructure Enterprises of India, operating across a synergistic chain of Strategic Business Units (SBUs) comprising of Power, EPC, Construction, Renewable, Resources, Non-Power Infrastructure, Property Development and CSR. The company's business segment includes construction, power, EPC, infrastructure, property development and renewable.

Yesterday, on 23rd Nov 2015, Lanco Infra announced its Q2FY16 results wherein its total income rose by 12.53 per cent to Rs 2657.5 crore against Rs 2361.67 crore on yearly basis. Revenues jumped due to rise in engineering, procurement and construction (EPC) revenues and the restarting of halted power projects. The total expenses declined by 18.72 per cent to Rs 1693.4 crore y-o-y basis.

The EBITDA increased by 104 per cent to Rs 1147 crore, the EBITDA margin expanded by 1938 basis points to 43.17 per cent on yearly basis. The Other income rose by 195.56 per cent to RS 115 crore, finance costs reduced by 13.8 per cent to Rs 830 crore on yearly basis.

The company managed to post its Net Profit of Rs 99 crore in Q2FY16 against the loss of Rs (-527.48) crore in Q2FY15. Lanco Infra posted profit after 12 consecutive quarters of losses. Due to the revenue growth and substantial improvement in fuel supplies to some of its power generation stations, the infrastructure firm also obtained lenders' approval for nearly 30 per cent cost overruns for four power generating step-down subsidiaries during the quarter.

The FII holdings reduced by 68 basis points to 0.66 per cent, while DII holdings reduced by 48 basis points to 4.36 per cent as on 30th September 2015. Today, after the result announcement, the company is trading at Rs 6.39, showing an increase of 20 per cent on the BSE.