Lanco Infratech Dec quarter net loss widens to Rs 530 cr

Tags: Companies
Lanco Infratech today reported a net loss of Rs 529.68 crore for the quarter ended December 2013, as the group continued to grapple with issues related to non-payment of dues and coal shortages.

The company had reported a net loss of Rs 465 crore during the same period a year ago, Lanco Infratech said in a BSE filing.

Total income from operations (gross) stood at Rs 2,515 crore during the quarter under discussion against Rs 3,716 crore for the same quarter last year.

Income from power business during the October-December period has been down by nearly 32 per cent to Rs 1,735 crore, denting the overall performance of the company. Revenues from power business stood at Rs 2,533 crore in the same quarter, Lanco said.

Similarly, EPC business was down by nearly Rs 304 crore to Rs 625 crore during the third quarter.

The Group has to shell out Rs 678 crore towards finance cost in the third quarter against Rs 674 crore during the same quarter in FY '13.

"As on December 31, the Group has receivables from various state electricity utilities and other customers for sale of power aggregating Rs 2765.76 crore," Lanco said.

"At present, the group's operating assets are not generating envisaged revenues on account of various factors beyond the control of the company such as short supply of coal, non-availability of gas, pending tariff clarity and delayed payment from customers posing challenges for meeting the cash flow need," it said.

The company said it is actively engaged in addressing the core issues and expect them to be resolved soon which would result in operating units generating 'positive cash flows'.

Meanwhile, Lanco said in a separate statement that its Board of Directors have decided to seek shareholders' approval to increase the authorised share capital of the company from Rs 500 crore to Rs 12,000 crore, besides converting Rs 152 crore infused by the promoters into the company as equity.

Lanco, in a filing with BSE also said the Board seeks shareholders' approval though postal ballot to provide an option giving to CDR lenders for conversion of restructured facilities under CDR package into the equity shares of the company.

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