Lanco Infratech Ltd posted a loss of ₹448 crore for the first quarter ended June 30, 2016, against a loss of ₹316 crore for the corresponding quarter last year.

The diversified infrastructure company has, however, seen its revenues going up by 10 per cent to ₹1,728 crore for the first quarter against ₹1569.5 crore it posted for the corresponding quarter last year.

The company’s performance and profitability was impacted due to inadequate fuel supplies to its gas-based power plants and delays in implementing the EPC projects. The later was mainly due to cash availability to execute the projects.

T Adibabu, Chief Operating Officer, Finance, told BusinessLine that the company had to contend with fuel supplied under the government’s stranded projects scheme.

This meant that the gas plants had to function at low capacities. This impacted the overall finances.

Secondly, the EPC execution was also hit as there have not been enough cash flows and discussions are now on with the consortium of lenders to ensure adequate cash flows and top up finance. “We are hopeful of striking a deal with lenders during the current quarter. This will enable us to take up the execution of some of the thermal power projects — Amarkantak, Babandh and Vidharbha. If works go as per plans, we expect to complete the execution of Amarkantak by the end of this fiscal, Babandh next fiscal and Vidharbha thereafter,” he explained.

The company has a total EPC order book of ₹26,794 crore.

Stake sale issue As per the terms with the lenders, the company has agreed to divest stake in some of the power projects as they near completion.

This would enable Lanco to bring down its overall debt, which has now gone up to ₹37,000 crore, plus the debt of about ₹6,000 crore due to Griffin coal mine in Australia.

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