Lanco Infra slips 9% in Q1 profit

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Summary"The fall in net profit is largely due to power," the firm said.

Lanco Infratech reported a 9 per cent decline in net profit for the quarter ended June 30, 2011, to Rs 235 crore on account of a dip in revenue realisation from its power business.

The company, which has earmarked a capital expenditure of Rs 8,000 crore for the current financial year, had posted a net profit of Rs 257.4 crore for the corresponding period of the previous financial year (2010-11).

"The fall in net profit is largely due to power, the realisations from merchant power were high last year, but this year, they were low," Lanco Infratech CFO J Suresh Kumar said.

The operating revenues of the company jumped 22 per cent year-on-year to Rs 3,115.2 crore in the first quarter of FY'12 from Rs 2,561.1 crore in the corresponding period last fiscal.

The company was not able to supply electricity to Tamil Nadu and Karnataka due to transmission grid congestion.

"We could not supply power to Tamil Nadu and Karnataka due to congestion in the grid," Kumar said, adding that the fault has been corrected now.

Lanco Infratech, which aims to commission three power projects this year, has earmarked a capex of Rs 8,000 crore for the 2011-12 fiscal, which will be funded in a debt-equity ratio of 75:25.

"The debt portion amounts to nearly Rs 6,000 crore and all of it has been tied up with various banks and financial institutions, including PFC, REC, Punjab National Bank, Uco Bank, etc," he said.

The remaining equity portion would be funded through internal accruals.

The company plans to commission the second 600-MW unit of its 1,200-MW (2x600 MW) Anpara thermal power project in Uttar Pradesh, a 742-MW gas-based power project at Kondapalli in Andhra Pradesh and the 70-MW (2x35 MW) Budhil hydro power project in Himachal Pradesh during the current fiscal.

The current installed power generation capacity of Lanco Infratech's projects is 3,292 MW.

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