Lanco Infratech net loss reduces to Rs 201 cr in Jan-Mar

NEW DELHI: Lanco Infratech's consolidated net loss reduced to Rs 200.71 crore for the quarter ended March 31, 2016 against that of Rs 586.29 crore in the same quarter of previous year.

Total income from operations during January-March quarter reduced to Rs 2,065.96 crore from Rs 2,224.27 crore in the year-ago period, Lanco Infratech said in a BSE filing.

"As at March 31, 2016 the Group has receivables from various State Electricity Utility Companies and other customers for sale of power aggregating to Rs 1,781.55 crore, net current assets of Rs 459.04 crore and current maturities of long term borrowings of Rs 2,033.49 crore," the company said.

Based on internal assessment and various discussions with the customers, the management is confident of recovery of receivables, it said.

At present the group's operating assets are not generating envisaged revenues on account of various factors beyond the control of the company, such as short supply of gas, pending tariff clarity and part payments from the customers are posing challenges for meeting the cash flow needs.

However, the group has actively engaged in resolving each of the aspects associated with the respective revenue generating units by effectively addressing the core issues which would enable a quick turnaround in the situation and the management is confident that the efforts would result in the operating units generating positive cash flows.

In a separate filing the company announced the re-appointment of G Venkatesh Babu as its Managing Director.

Lanco is present in five sectors--EPC, power, solar, natural resources and infrastructure and property development.