Lanco Infratech, belonging to maverick anti-Telangana MP Lagadapati Rajgopal, is facing a severe financial crisis. The company’s stock price tumbled to an alarming Rs 5 last week, from about Rs 500 in December 2009.
Lanco has posted a huge loss of Rs 578 crore for the first quarter ended June 30, 2013 against a loss of Rs 441 crore in the corresponding period last year.
Lanco’s performance was severely impacted due to lower power generation in its gas-based and coal power plants, hurdles in project execution, higher interest outgo and foreign exchange loss of Rs 220 crore.
Lagadapati Rajgopal’s company is currently in a deep debt trap. Its gross debt has reached Rs 35,394 crore last month
Lanco Infratech’s Australian subsidiary Griffin Coal, is also in severe financial stress. Last week, it missed a $1.5 Million payment to The Construction, Forestry, Mining and Energy Union.
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