Lanco Infratech may post Q2 loss at Rs 450 cr: Poll

Lanco Infratech will announce its second quarter (July-September) results today. According to a CNBC-TV18 poll, analysts on an average expect the power producer to report a consolidated loss of Rs 450 crore during the quarter as against adjusted loss of Rs 280 crore in a year ago period as most of its power projects continue to operate at sub-optimal plant load factors (PLFs) and interest burden remains high.

Gross generation will also fall 18 percent Q-o-Q mainly due to lower generation at Udupi and Anpara while coal business (Griffin) will continue to report loss and will turn EBITDA positive only by Q4FY14, say analysts.

Execution in EPC business will also decline as no substantial progress has been made at its projects under construction.

Total income from operations is likely to fall 17.7 percent year-on-year to Rs 2,620 crore in three-month period ended September 2013.

Earnings before interest, tax, depreciation and amortisation may be unchanged at Rs 521 crore in the quarter gone by while operating profit margin may expand 350 basis points Y-o-Y to 19.9 percent during second quarter.

Investors will focus on debt position and source of repayments until the issues are resolved, collection of past dues from UP and Karnataka and progress on stake sale to reduce debt.

During the quarter, the company announced that it will go for corporate debt restructuring for standalone debt of Rs 7,300 crore.

Gross debt of the company stands at Rs 35,394 crore, out of which Rs 17,705 crore debt is for projects under operation and Rs 17,688 crore debt is for projects under construction.