Lanco Infra Q1 consol PAT seen down 63% at Rs 72 cr

Lanco Infratech is expected to report a fall of 63% (YoY) in profits for the first quarter of FY12. During the period, consolidated profit after tax of the company is likely to fell to Rs 72.23 crore from Rs 194.69 crore in the corresponding quarter last fiscal.

Total income is seen going up 5% (YoY) to Rs 2,230.58 crore from Rs 2,125.63 crore.
EBITDA is likely to go down 13% to Rs 520.77 crore in the quarter ended June 2011 against Rs 595.36 crore in same quarter the last year. Operating profit margin too is seen declining to 23.35% versus 28.01% year-on-year.
Company may see earnings downgrade given slower EPC execution, lower PLFs due to KG gas shortage, sale of Amrkantak II power at lower rates to Haryana SEB and less-than-targeted capacity additions. Greater proportion of elimination is likely to impact earnings.
* Lanco Amarkantak has started selling greater proportion of its power on PPA
* Due to lower gas supplies for Kondapalli - II project, earnings are expected to be lower YoY
Co is expected to see robust gross construction revenues; however inter-segment eliminations and lower merchant rates to drive relatively lower consolidated revenue growth
* Construction and EPC segment order book at the end of Q1FY12 stood at Rs.30200cr Lower merchant realizations on a YoY basis to impact co's profitability Q1FY12 Highlights
Company is facing a major law suit of AUD3.5 billion for non compliance of coal supply agreement to Perdaman, an Australian co
Company bagged its first international order of Rs 350 crore for power EPC in Q1FY12
However, lower PLFs will bring down the sales volumes and incentives which bring down EBITDA margins Project commissioning
Co is expected to commission 1.9GW of projects in FY12 comprising the 1.2GW Anpara proj, 0.6GW Udipi proj ((Unit II)), 70MW (Lanco Green) hydro proj
Co commissioned the second unit of Udipi proj in Q1FY12 but due to lack of transmission infra, plant was not able to run on full load
Transmission line is expected by September 2011
The first unit of Anpara plant is synchronized and the second unit is expected in H1FY12