Hyderabad: Lanco Infratech Ltd on Monday posted a net profit for the second quarter of this financial year after posting losses for the last three years. The company said its financials were boosted because of tax reimbursements and favourable power tariff order.
According to the company, it posted a consolidated net profit of Rs 98.98 crore in the second quarter of the current fiscal compared to a loss of Rs 527.48 crore in the same period last year.
Elaborating further, the company said that Lanco Kondapalli Power, a step down subsidiary of the company, received a favourable order from the Supreme Court directing Andhra Pradesh utilities for MAT reimbursement of about Rs 175 crore plus interest towards tax component forming part of the tariff for the period FY 2001 to FY 2012.
After the apex court order, the company has recognised the said amount as income during the second quarter. The company further said that Lanco Anpara Power, a step down subsidiary of Lanco Infratech, received UPERC Tariff order to compensate for the changes in RFP/PPA conditions in respect of coal supply and power purchase payments.
Consequent to the UPERC order, the company recognised Rs 499.58 crore as one time tariff income for the quarter ended September 30, 2015.
The company, which was based in Hyderabad, had shifted its base to New Delhi during the Telangana agitation. According to the company, its EPC revenue has seen a significant jump of 366 per cent (QoQ) on account of restart of work in the group’s under construction stalled power projects — Amarkantak 3&4, Babandh, Vidarbha and Mandakini which can produce 4,036 megawatt with an investment of about Rs 33,000 crore.
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