30% due to slowdown
Lanco Infratech Q4 loss widens to Rs 584 cr income down 23%
Lanco loss widens to Rs 530 cr on receivables, fuel shortage
Some relief for Lanco Infratech
Lanco Infratech Sep quarter net loss widens to Rs 581 crore
Lanco Infratech Ltd
On BSE 8.05-0.24 (-2.90%) On NSE 8.05-0.20 (-2.42%)
Lanco Infratech, which has interests in infrastructure, power and realty segments, retrenched 30 per cent of its 5,700 workforce during the last financial year due to slowdown in development of some of its projects amid subdued market conditions.
According to the latest annual report of the infra major, the group, which had a workforce of 5,700 by the end of March 2013, cut down its workforce to 4,000 by the end of March this year. By the end of FY12, it had nearly 8,000 employees, the report said.
When Lanco Infratech sold its 1,200 Mw thermal power plant in Udupi to Adani Power last week for Rs 6,000 crore, it divested its most profitable asset to trim debt. Now the company plans to sell another 3,000 Mw capacity for Rs 20,000 crore, wiping out its operational power portfolio.
The Hyderabad-based company, which has 16 operating firms in power, coal mining and road construction, had debts of Rs 34,297 crore in March 2014, nearly 13 times its equity.
Adani Power has bought Hyderabad-based Lanco Infratech’s Udupi power plant at an enterprise valuation of Rs 6,000 crore. While Adani will take over the plant’s Rs 4,000 crore worth of debt, Lanco will receive Rs 2,000 crore in cash, which it plans to use for lowering its debt.
This is the largest acquisition in the thermal power space. According to bankers, Adani Power pipped JSW Energy in the negotiations and announced the transaction within two weeks of starting talks.
Lanco Industries Limited (LIL), a Lanco group company engaged in production of pipes, pig iron and cement, is adding smaller dia ductile iron pipes (SDP) to its existing range of products at a cost of Rs 325 crore.
The company, located at Srikalahasti in Andhra Pradesh, stated in a press release that it would produce 100,000 tonnes of SDP a year.
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