Lanco Infratech Q1 net loss may widen to Rs 280 cr QoQ

Lanco Infratech will declare its April-June quarter earnings today. Hyderabad-based infrastructure firm may report huge loss of Rs 280 crore during the quarter as against reported loss of Rs 441 crore in a year ago period and loss of Rs 32 crore in March quarter.

Year-on-year comparison is not completely viable due to consolidation effect of Udupi and Anpara in March 2012.

Lower losses Y-o-Y may be on account of higher plant load factors (PLFs) at Anpara and better realization at Griffin.

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Analysts expect an improvement in profitability of operational projects which have been hurt by infrastructure/fuel availability and other related issues. Gross generation may improve Q-o-Q due to improvement in fuel availability at both Udupi and Anpara.

Total income from operations is likely to fall by 7.1 percent on yearly basis (down 9 percent sequentially) to Rs 3,248 crore as strong growth in power is likely to be offset by fall in EPC revenue.

Earnings before interest, tax, depreciation & amortisation (EBITDA) are seen going up by 2.5 percent Y-o-Y (down 33.9 percent Q-o-Q) to Rs 600 crore and operating profit margin may rise 170 bps year-on-year (down 700 bps Q-o-Q) to 18.5 percent during June quarter.

Key things to watch out for are recovery of receivables in operational projects and progress on under construction projects.

The company has initiated the process of corporate debt restructuring (CDR) for standalone debt of Rs 7,300 crore. Its consolidated debt on the books stands at over Rs 33,000 crore.