Maintain ‘buy’ on Lanco Infratech with an SoTP-based target price of Rs 9 per share. Resolution of regulatory issues seems to be behind us and progress on asset / stake sale leading to reduction in debt will determine stock performance.
Lanco’s Q2FY16 adjusted loss was in line at ~Rs 470 crore. EPC operations have resumed and normalised activity is expected going forward with quarterly revenue of ~Rs 1,500 crore and ~11-12% ebitda. Kondapalli expansion is expected to be commissioned by Q3FY16 end; with the recent gas pooling initiative, it is expected to operate at ~50% PLF.
Shares of Lanco Infratech hit upper circuit for the second consecutive trading session on Thursday on reports that the company will raise about Rs 6,600 crore ($ 1 billion) through the sale of one of its large power projects and listing of its power business in the next two years. The share price of the company surged 9.86 per cent to Rs 7.02.
A spurt in volumes was witnessed on the counter. On BSE, 20.53 lakh shares were traded in the counter, compared with an average volume of 13.71 lakh shares in the past two weeks.
Swinging back to black Lanco Infratech Ltd today posted a consolidated net profit of Rs 98.98 crore in the second quarter of the current fiscal after three years, due to tax reimbursements and favourable power tariff order.
The firm posted a loss of Rs 527.48 crore in the same period last year, Lanco Infratech Ltd (LITL) said in BSE filing.
Lanco Infratech Limited today announced its subsidiary Lanco Solar Private Limited has signed an MoU with Chattishgarh to set up a 100-mw solar cell manufacturing unit in the state.
The company has already invested Rs 1,200 crore in integrated solar photo voltaic (PV) project, restarted in July this year. The project is being set up at a 250-acre SEZ in Rajnandgaon in Chattisgarh.
HYDERABAD: In a relief to cash strapped infrastructure developer Lanco Infratech, the Supreme Court on Friday directed the erstwhile Andhra Pradesh power utilities to refund about Rs 175 crore of minimum alternate tax (MAT) collected from Lanco Kondapalli Power (LKPL) from 2001.
Confirming the court's orders upholding orders passed by the Appellate Tribunal for Electricity (APTEL), a senior Lanco Kondapally executive said the issue involved reimbursement of MAT from 2001 to 2012.
Mumbai: Lanco Infratech Ltd’s lenders had had enough. The infrastructure company had made plenty of promises during its debt-restructuring negotiations with banks in 2013 as it sought to recast about Rs.7,000 crore in loans. A year and a half later, only a few of those promises had been honoured.
Asset sales were far too few and the slower-than-expected economic recovery meant that the stress on Lanco’s balance sheet showed no signs of easing.
Bengaluru: Debt-laden Lanco Infratech Ltd has postponed asset sale by at least two years due to lower valuation for power assets, L. Madhusudhan Rao, executive chairman of Lanco Infratech, told reporters on Monday at the company’s annual general meeting (AGM).
Lanco Infratech—which has engineering, procurement and construction (EPC), power, solar energy, coal mining and infrastructure businesses—has a total debt of Rs.34,000 crore.
Hyderabad: Lanco Infratech Ltd on Friday said its subsidiary Lanco Kondapalli Power Ltd has entered into power purchase agreements (PPAs) with Telangana and Andhra Pradesh electricity distribution companies to sell about 1,108 megawatt (MW) of gas-based power for six months starting October.
Lanco has secured gas under the pooling mechanism for 1 October to 31 March 2016 to supply power at Rs.4.70 per kilowatt hour (kWh) and at 50% plant load factor (PLF), a measure of capacity utilization.
Lanco Infratech, an Indian electricity producer, is considering selling part of its generation business to cut debt amid four straight years of losses.
The company expects to raise Rs 4,000 crore ($630 million) in two to three years by either taking the unit public or roping in a strategic partner, said T Adi Babu, chief operating officer, finance. Lanco will also sell its Australian coal mine and its toll-road business in India when it gets an acceptable price, he said.
MUMBAI: Gautam Adani-led Adani Group has finally acquired Lanco Infratech's 1200 MW Udupi power plant for an enterprise value of Rs 6,300 crore — Rs 300 crore or 5% more than the deal value of Rs 6,000 crore announced in August last year.
TOI first reported on February 10 that Adani struck a new deal agreeing to value the asset 5-7% higher to accommodate additional interest accruals made by the banks. The original deal struck in August last year had run into trouble and missed deadline as lenders sought better terms to approve the transaction.
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