Anti-Telangana politician Lagadapati Rajgopal’s Lanco Infratech is slowly slipping into a debt trap. The company’s losses are mounting every quarter. Here is a news article about its latest losses:
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Independent power producer Lanco Infratech Ltd on Tuesday reported a loss of Rs.464.6 crore for the quarter ended 31 December because of a steep decline in engineering, procurement and construction (EPC) business, higher finance costs and foreign exchange losses.
The company made a net profit of Rs.60.92 crore in the same period last year.
Revenue before elimination of inter-segment operating income declined by 19% from Rs.4,596.18 crore in the third quarter.
The EPC business declined by 70% to Rs.928 crore from the previous year, while the power segment that accounts for two-thirds of revenue doubled to Rs.2,534 crore.
The average plant load factor, an indicator of capacity utilization, stood at 57% because of fuel shortages and maintenance shutdowns. Lanco has a total operating capacity of 4,000 megawatts.
Lanco said it needs to recover Rs.3,525.22 crore from state utilities, as of 31 December. The company has a net debt of Rs.33,833 crore.
Shares of Lanco declined by 3.13% to close at Rs.12.08 on BSE, while the benchmark index rose by 0.52% to 19,561.04 points.
(By Viswanath Pilla for Live Mint)