Lanco Infratech - Registers Net Profit after a gap of 3 Years in Q2FY16; PAT for Q2FY16 at Rs. 989 Million; Revenue at Rs. 34934 Million

During the Quarter

• Company earned profit for the quarter on consolidated basis after a gap of 3 Years.

• The second quarter has seen significant jump of 366% (QoQ) in EPC Revenues of LITL on account of restart of work in the Group’s under construction stalled power projects (Amarkantak 3&4, Babandh, Vidarbha and Mandakini - totalling 4036 MW with an investment of approx. Rs.33,000 Cr)

• Kondapalli Unit I has received a favourable order from Supreme Court directing AP utilities for MAT reimbursement of Rs.175 Cr plus interest towards tax component forming part of tariff for the period FY 2001 to FY 2012.

• Kondapalli Phase II & III (1108 MW) have won bids under gas pooling mechanism for operating at 50% PLF from October 1, 2015 to March 31, 2016.

• Anpara received the UPERC Tariff order to compensate for the changes in RFP/PPA conditions in respect of coal supply and Power purchase payments.

• Supreme Court has directed South Eastern Coalfields to supply coal and PGCIL to provide transmission corridor to Amarkantak 300MW Unit II, and accordingly SECL has started supplying coal w.e.f 7^th Nov’15 after a gap of 30 months.

• Order for Transmission line Project worth Rs.1,247 Mn received during the quarter

• The EPC order book of Lanco (including power and solar projects) stands at Rs.27,722 Crores. The financial closure of the cost overrun proposals of the above projects will enable the execution of majority of this order book within the next three years.

Result Update: Consolidated Performance (Udupi has been removed from FY15 numbers to have better Comparison, as Udupi was sold during the current year.)

• Gross Revenue before eliminations increased by 96% YoY to Rs. 34,934 Mn in Q2FY16 from Rs.17,833 Mn in Q2FY15

• Gross Revenue before eliminations increased by 38% YoY to Rs. 51,299 Mn in H1FY16 from Rs.37,096 Mn in H1FY15

• Cash profit of Rs. 5,750 Mn in Q2FY16 vs. Cash loss of Rs. 452 Mn in Q2FY15.

• Cash Profit of Rs. 4,992 Mn in H1FY16 vs. Cash loss of Rs. 1,677 Mn in H1FY15.

• Adjusted EBITDA increased by 300% YoY to Rs. 11,816 Mn in Q2FY16 from Rs. 2,952 Mn in Q2FY15

• Adjusted EBITDA increased by 118% YoY to Rs. 14,984 Mn in H1FY16 from Rs. 6,887 Mn in H1FY15

• Reported profit of Rs. 989 Mn in Q2FY16 vs. loss of Rs. 5,088 Mn in Q2FY15.

• Reported loss of Rs. 2,014 Mn in H1FY16 vs. loss of Rs. 8,199 Mn in H1FY15.

• Adjusted Net Worth (including Minority Interest) of the company stood at Rs. 29,579 Mn at end Sept’2015.                                                                     

Financial Performance:

Rs. Mn

*Before inter segment / intra-group elimination

Key Balance Sheet Figures as on 30^th Sept, 2015:

Rs. Mn

*Excludes acquisition debt of Griffin Coal and working capital loans of power companies

Sector Wise Performance:

1. POWER

- Total Outstanding Receivables of Rs. 18,450 Mn from various State Electric Utilities as of Sept’2015

Rs. Mn

Details of Power Projects under Operation for the Quarter

Amarkantak Power (2 X 300 MW)

• PAF for Unit-1 was 80% during the quarter. Due to unit outage of 17 days on account of annual overhauling.

• Unit 2 remained shut throughout the quarter due to non-Scheduling by power off-takers. Based on Supreme Court order dated 18.09.15, SECL has started supplying Coal.

• 2,750 manpower deployed for execution for Unit 3&4

Lanco Kondapalli Power (Unit 1- 368 MW and Unit 2 – 366 MW)

• PAF for Unit-1 for the quarter was 100%. Unit 1 generated 111 MUs during the quarter. PLF for Unit 1 for the quarter ended Sept 15 was 14%. Lower generation was on account of non-supply of gas by GAIL due to fire incident in the pipeline.

• Unit-2 operated using e-bid RLNG as per GOI scheme. PLF for Unit 2 was 85%.

• Company has recognized Rs.175 Cr as MAT re-imbursement during the quarter based on Supreme Court order dated 16.10.15.

Anpara Power (2X600 MW)

- PAF for the quarter was 78%. PLF for the quarter was 76%. Unit 1 was under shutdown for 19 days due to annual maintenance & Unit 2 was under shut down for 10days due to technical problems.

Tanjore (1X120 MW)

- PLF for the quarter ended Sept 2015 was 58% with plant availability of 87%.

NETS (Power Trading)

- Total 282 MUs traded during the quarter at an average realization rate of Rs.4.2/Kwh. 215MUs Energy sourced from Anpara sold to TamilNadu at an average realization rate of Rs.4.3/Kwh and 67Mus energy of external parties sold in Exchange at an average realization rate of Rs.3.8/Kwh.

2. EPC:

Rs. Mn