Swinging back to black Lanco Infratech Ltd today posted a consolidated net profit of Rs 98.98 crore in the second quarter of the current fiscal after three years, due to tax reimbursements and favourable power tariff order.
The firm posted a loss of Rs 527.48 crore in the same period last year, Lanco Infratech Ltd (LITL) said in BSE filing.
According to the statement, the company earned profits on the consolidated basis after a gap of three years.
Elaborating further, the company said that Lanco Kondapalli Power a step down subsidiary of the company received a favourable order from Supreme Court directing Andhra Pradesh utilities for MAT reimbursement of about Rs 175 crore plus interest towards tax component forming part of the tariff for the period FY 2001 to FY 2012.
After the apex court order, the company has recognised the said amount as income during the second quarter.
The company further said that Lanco Anpara Power, a step down subsidiary of Lanco Infratech, received UPERC Tariff order to compensate for the changes in RFP/PPA conditions in respect of coal supply and power purchase payments.
Consequent to the UPERC order, the company recognised Rs 499.58 crore as one time tariff income for the quarter ended September 30, 2015.
The company’s consolidated net loss during the first half of this fiscal narrowed to Rs 201.38 crore compared to Rs 833.83 crore in April-September period last year. It had recorded a consolidated net loss of Rs 2,036.74 crore in 2014-15.
Its consolidated income from operations increased to Rs 3,418.60 crore in the second quarter as against Rs 2,287.25 crore in the same period, a year ago.
It said that the second quarter has seen significant jump of 366 per cent (QoQ) in EPC Revenues of LITL on account of restart of work in the Group’s under construction stalled power projects (Amarkantak 3&4, Babandh, Vidarbha and Mandakini – totalling 4036 MW with an investment of about Rs 33,000 crore)
Its Kondapalli Phase II & III (1108 MW) have won bids under gas pooling mechanism for operating at 50 per cent PLF from October 1, 2015 to March 31, 2016.
The company said that the Supreme Court has directed South Eastern Coalfields to supply coal and PGCIL to provide transmission corridor to Amarkantak 300 MW Unit II, and accordingly SECL has started supplying coal from November 7, 2015 after a gap of 30 months.
The EPC order book of Lanco (including power and solar projects) stands at Rs 27,722 crore. The financial closure of the cost overrun proposals of the above projects will enable the execution of majority of this order book within the next three years, the company said.