Arm of Lanco Infratech starts power supply to Haryana Discoms

Lanco Infratech informed the exchange that its subsidiary Lanco Amarkantak has started providing power supply to Haryana discoms from its coal-based power plant in Chhattisgarh. In September, Lanco Amarkantak got a favourable order from the Supreme Court directing South Eastern Coalfields to supply coal to the Chhattisgarh plant.

Lanco's total 1800 MW coal-based power portfolio is now utilised to its full capacity with the addition of current 300MW power plant. The company is expecting the revenue of Lanco Amarkantak to double by around Rs.1200 crores and increase the EBITDA by around Rs.200 crores for full year operation after the start of power supply to Haryana Discom.

The current fiscal is very good and path breaking for the company as they reported a profit after 12 consecutive quarters of losses, a turnaround which was made possible by a noteworthy spurt in EPC revenues and favourable regulatory orders. The management is expecting the resumption of Power supply to Haryana Discoms is going to be profit assertive for them in the coming quarters and will also have a positive impact on overall financials of the Lanco Group.

In terms of financials the total consolidated operating revenue of Lanco Infratech on year ending March 2015 stands at Rs.9371.91 crores a decrease of 10.14 percent on yearly basis. The EBITDA of the company is at Rs.1693.91 crores an increase of 12.61 percent and EBITDA margin is 18.07 percent as compared to 14.42 percent for the  same period last year. The company faced a net loss of Rs.2143.53 crores in FY 2015.

The expected 100 percent in revenue of Lanco Amarkantak will help the company in improve financials. Today, the stock of the company is trading at Rs.6.54. It increased by 6 percent in last 2 trading sessions.

As one of India's leading business entities, Lanco Infratech Limited has been driving growth in the domains of Engineering, Procurement and Construction (EPC), Power, Solar, Natural Resources and Infrastructure over the last two-and-a-half decades. The current power portfolio of Lanco has capacities of 3,460 MW under operation and 4636 MW under construction. The Group’s current employee strength is approximately 3,800.