Lanco Infratech posts Q2 net loss of Rs.136 cr
HYDERABAD, Nov 11, 2012 (Menafn - Mint - McClatchy-Tribune Information Services via COMTEX) --Lanco Infratech Ltd on Saturday said its second quarter consolidated net loss narrowed to Rs.135.93 crore from Rs.259.48 crore in the same period previous fiscal.
Second quarter earnings were hit by fuel shortages and underutilization of capacities at its power projects, the company said.
Lanco recorded a two-third jump in revenue to Rs.3,184.77 crore in the three months ended 30 September from Rs.1,896.31 crore in the year-ago period.
The company's power business, which contributes about 60% of its total revenues, doubled to Rs.2,223.8 crore.
Lanco has an operating capacity of 3,924 MW. Average plant load factor (PLF), an indicator of a power plant's capacity utilization, was at 45%.
During the second quarter, the company had commissioned 600 MW Udupi Unit II and completed 400 KV transmission line for Unit II for power evacuation.
"The new plants that have started operations, including the 1,200 MW Anpara in Uttar Pradesh and 1,200 MW in Udupi, Karnataka, could not operate at full capacity due to various issues related to fuel and infrastructure," said T. Adi Babu, chief operating officer of finance at Lanco, speaking to Mint over phone.
"Our hope is to bring group level plant load factor improvement to around 70% level by the end of this quarter," Babu said.
Lanco, which has interests in power, engineering, procurement and construction (EPC) and real estate, among others, has a net debt of more than Rs.32,700 crore.
The company is trying to divest its stakes in some of its projects, especially in road and hydro project, to reduce its debt burden and to generate cash to invest in its ongoing projects.
Babu said he is confident of closing one deal by the end of December.
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