Lanco Infratech operating revenues up 18%

Lanco Infratech Limited (LITL), one of India?s fastest growing integrated infrastructure enterprises, has posted a 18% increase in operating revenues in the fourth quarter of FY2011.

Financial Highlights:

? Operating Revenues (before elimination) up by 18% yoy, from Rs 95,328 million to Rs 112,652 million

? EBITDA (Before elimination) up by 44% yoy, from Rs 18,045 million to Rs 26,068 million

? Cash Profit up by 30% yoy, from Rs 9,980 million to Rs 13,164 million

? Cash EPS stands at Rs. 5.45 per share

? Profit After Tax, before adjustment for profit on transaction with Subsidiaries and Associates and forex, up by 55% yoy from Rs 5,552 million to Rs 8,628 million

Consolidated performance:

Revenue:

? Before elimination the revenue grew by 18%, up from Rs 95,328 mn in FY 10 to Rs 112,652 mn in FY11.

? Total revenue after elimination stands at Rs 80,044 mn in FY 11 against Rs 82,336 mn in FY 10, a marginal drop of 3% due to higher elimination of revenue.

EBITDA:
? The EBITDA (before elimination) grew by 44%, up from Rs 18,045 mn in FY10 to Rs 26,068 mn in FY11.

? The EBITDA (after elimination) in FY11 came in healthy, registering a margin of 35% led by higher contribution from power segment. EBITDA (after elimination) grew by 26%, up from Rs 17,110 mn in FY10 to Rs 21,487 mn in FY11.

PAT:
? Profit After Tax, before adjustment for profit on transaction with Subsidiaries and Associates and forex, stood at Rs 8,628 mn in FY 11 registering a growth of 55% over FY10.

? Profit after Tax (after elimination) down by 3% yoy, from Rs 4,586 mn to Rs 4,461 mn.

Cash Profit:
? Cash profit derived after adjusting for non cash items, such as Depreciation, Deferred tax, MAT Credit and inter-company elimination, stood at Rs 13,021 mn registering a growth of 30% over FY10.

? Cash EPS for FY11stands at Rs 5.45 per share against Rs 4.18 per share in FY10.

Segment performance:

EPC and Construction:

o Revenue for FY11 came in line with the projections and stood at Rs 59,617 mn.

o EBITDA margin of 15% for the year was also in line with the projections.

o EBITDA margin for the quarter came in slightly lower at 13% on account of changes in revenue mix.

o EBITDA down by 6%, from Rs 9,277 mn in FY10 to Rs 8,765 mn in FY11.

o Order Book as on 31st March 2011 stands at Rs 302 Mn. Major Orders received during the year:

o 1,200 MW EPC order from Moser Baer group company

o 1,980 MW BoP order from Mahagenco

o Solar EPC

o Building and other Industrial Projects

o Moser Baer and Koradi orders marked the foray of Lanco into the lucrative external EPC business.

Power:

o Revenue for FY11 stood at Rs 49,452 mn registering a growth of 37% over the previous year.

o EBITDA margin were impressive at 50% compared to 45% for the previous year.

o There was huge jump in EBITDA on account of increase in operating capacity. EBITDA stood at Rs 16,538 mn compared to Rs 8,549 mn in FY10 registering a growth of 93%. The figures do not include the EBITDA of UPCL of Rs 1,680 mn as it is not yet being consolidated on account of its Associate status.

o During the year the Power division traded 7,842 mn (excluding Udupi Power) and realized Rs 32,920 mn i.e. average realization of around Rs 4.2 per unit.

o During the year, Kondapalli II realized Rs. 4.25 and Amarkantak I realized Rs. 4.57 per unit.

o Power trading division traded 6,043 million units during FY11 compared to 4,269 mn units in FY10.

o Total Power portfolio under operation and/or construction stands at 9,300 MW of which 3,292 MW is already installed and the rest 6,000 MW projects are financially closed & in various stages of construction.

o Udupi (1,200 MW), Anpara (600 MW), Kondapalli (133 MW, Steam turbine) and Other Renewable (10 MW) synchronized during the year.

Resources:

During the year Lanco through its step down subsidiary, Lanco Resources Australia Pty Ltd., purchased 100% interest in Griffin Coal Mining Company Pty Ltd. and Carpenter Mine Management Pty Ltd. (Griffin Coal). This acquisition will provide increased fuel security for current as well as future coal based power plants being / to be developed by group.

o With the acquisition of Griffin Coal, new segment ?Resources? has been added to Lanco?s business verticals. Revenues for one month (March 2011) of operations (as Griffin mines were transferred to Lanco by end of Feb 2011) stood at Rs 1,342 mn and EBITDA at Rs 487 mn i.e. EBITDA margin of 36%.

Property Development:

o Revenue and EBITDA for FY11 stood at Rs 1,673 mn.

Infrastructure:

The segment has two road projects in the state of Karnataka totaling around 160 km in length are closer to operations.

Emerged as successful bidder for developing National Highways Authority of India?s (NHAI) Aligarh to Kanpur Section of National Highway – 91 in the State of Uttar Pradesh on Design, Build, Finance, Operate and Transfer (DBFOT) on Toll Basis. The Project involves an investment of around Rs 10,000 million and the Grant from NHAI would be Rs 2,879 million.