MIRA
INFORM REPORT
|
Report Date : |
27.04.2011 |
IDENTIFICATION DETAILS
|
Name : |
LANCO INFRATECH LIMITED |
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Registered Office : |
Plot No.4, Software Units, |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
26.03.1993 |
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Com. Reg. No.: |
01 - 15545 |
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CIN No.: [Company
Identification No.] |
L45200AP1993PLC015545 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
HYDL00805A |
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PAN No.: [Permanent
Account No.] |
AAACL3499H |
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Legal Form : |
A Public Limited Liability Company. Company’s Shares are Listed of the
Stock Exchanges. |
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Line of Business : |
Subject is engaged in Construction and Development of
Infrastructure Facilities, Property Development, Generation of Power and
Trading in Power. |
RATING & COMMENTS
|
MIRA’s Rating : |
A (65) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
USD 160000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and a reputed company having good track.
Financial position of the company appears to be sound. Directors are reported
to be experienced and respectable businessmen. Trade relations are reported
as fair. Business is active. Payments are reported to be regular and as per
commitments. The company can be considered good for normal business dealings at
usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
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|
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
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Registered Office : |
Lanco House, Plot No. 4, Software Units Layout, |
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Tel. No.: |
91-40-40090400 |
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Fax No.: |
91-40-23116109 |
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E-Mail : |
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Website : |
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Corporate Office : |
Plot No 397 Udyog Vihar, Phase III Gurgaon 122 016, |
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Tel. No.: |
91-124-4741000 - 044 |
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Fax No : |
91-124-4741764 |
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Factory : |
Plot No. 229, Udyog Vihar, Phase No. I, Gurgaon – 122 016, |
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Tel. No.: |
91-124-4691000/ 46910001/ 46910002/ 46910003/ 46910004 |
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Fax No.: |
91-124-46910005 |
DIRECTORS
AS ON 31.07.2010
|
Name : |
Mr. L. Madhusudhan Rao |
|
Designation : |
Executive Chairman |
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Date of Birth/Age : |
42 Years |
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Qualification ; |
M.Tech, M.S. (Industrial Engg) |
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Experience : |
19 Years |
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Name : |
Mr. G. Bhaskara Rao |
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Designation : |
Executive Vice Chairman |
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Date of Birth/Age : |
53 Years |
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Qualification ; |
M.E. (Mechanical Design) |
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Experience : |
27 Years |
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Name : |
Mr. L. Sridhar |
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Designation : |
Vice- Chairman |
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Name : |
Mr. G. Venkatesh Babu |
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Designation : |
Managing Director |
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Name : |
Dr. P. Kotaiah |
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Designation : |
Director |
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Name : |
Mr. P. Abraham |
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Designation : |
Director |
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Name : |
Dr. Uddesh Kumar Kohli |
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Designation : |
Director |
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Name : |
Mr. P. Narasimharamulu |
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Designation : |
Director |
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Name : |
Dr. B. Vasanthan |
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Designation : |
Director |
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Name : |
Mr. C. Krishna Kumar |
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Designation : |
Sr. Vice Presdient and |
KEY EXECUTIVES
|
Name : |
Mr. J. Suresh Kumar |
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Designation : |
Chief Financial Officer |
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Date of Birth/Age : |
38 Years |
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Qualification : |
ACA |
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Experience : |
13 Years |
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Date of Commencement : |
01.04.2006 |
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Name : |
Mr. C. Krishna Kumar |
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Designation : |
Company Secretary |
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Senior Management
Team : |
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Power : |
Mr. P. Panduranga Rao Mr. K. Raja Gopal Mr. Pradeep Lenka Mr. Sanjay Kumar Mittal Mr. K.K.V. Nagaprasad Mr. M.N. |
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EPC : |
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Construction : |
Mr. S. M. Roy |
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Property
Development : |
Mr. S. Pochendar |
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Solar Power –
Manufacturing: |
Mr. V. Saibaba |
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Finance : |
Mr. J. Suresh Kumar |
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Business
Development : |
Mr. Sanjay Divakar Joshi |
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Corporate Affairs : |
Mr. V. Sreenivas |
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Human Resource : |
Dr. K.P. Kumar |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.03.2011
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
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211,635,903 |
8.79 |
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319,114,320 |
13.25 |
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88,360,026 |
3.67 |
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87,970,026 |
3.65 |
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390,000 |
0.02 |
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619,110,249 |
25.71 |
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1,017,830,524 |
42.27 |
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1,017,830,524 |
42.27 |
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Total shareholding of Promoter and Promoter Group (A) |
1,636,940,773 |
67.98 |
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(B) Public Shareholding |
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35,468,430 |
1.47 |
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42,396,484 |
1.76 |
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453,734,767 |
18.84 |
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531,599,681 |
22.08 |
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58,089,943 |
2.41 |
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63,913,141 |
2.65 |
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18,058,092 |
0.75 |
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99,203,290 |
4.12 |
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79,698,348 |
3.31 |
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5,910,255 |
0.25 |
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12,924,777 |
0.54 |
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669,910 |
0.03 |
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239,264,466 |
9.94 |
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Total Public shareholding (B) |
770,864,147 |
32.02 |
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Total (A)+(B) |
2,407,804,920 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Directors/Promoters & their Relatives
& FriendsBUSINESS DETAILS
|
Line of Business : |
Subject is engaged in Construction and Development of Infrastructure
Facilities, Property Development, Generation of Power and Trading in Power. |
GENERAL INFORMATION
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No. of Employees : |
Around 3200 (Approximately) |
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Bankers : |
Ř Allahabad Bank Ř Andhra Bank Ř
Bank of Ř
Bank of Ř Canara Bank Ř
Central Bank of Ř Corporation Bank Ř DBS Bank Limited Ř Dena Bank Ř HDFC Bank Limited Ř ICICI Bank Limited Ř IDBI Bank Limited Ř Indian Overseas Bank Ř IndusInd Bank Limited Ř Infrastructure Development Finance company Limited Ř ING Vysya Bank Limited Ř Kotak Mahindra Bank Limited Ř
Life Insurance Corporation of Ř Oriental Bank of Commerce Ř
Ř Punjab National Bank Ř Srei Infrastructure Finance Limited Ř
State Bank of Ř
State Bank of Ř
State Bank of Ř
State Bank of Ř
State Bank of Ř Syndicate Bank Ř Tata Capital Limited Ř The Catholic Syrian Bank Limited Ř The Jammu and Kashmir Bank Limited Ř UCO Bank Ř
Union Bank of Ř Vijaya Bank Ř
Yes Bank Limited |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors 1 : |
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Name : |
Price Water House Chartered Accountants |
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Address : |
Building 8, 7th and 8th Floor, Tower – B, |
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Auditors 2 : |
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Name : |
Brahmayya and Company Chartered Accountant |
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Address : |
No.48, |
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Associates/Subsidiaries : |
1. Lanco Kondapalli Power Private Limited ( LKPPL) 2. Aban Power Company Limited (APCL) 3. Lanco Amarkantak Power Limited (LAPL) 4. Lanco Hills Technology Park Private Limited (LHTPPL) 5. Lanco Power Trading Limited (LPTL) (Earlier Lanco Electric Utility Limited) 6. Lanco Energy Private Limited (LEPL) 7. Lanco Green Power Private Limited (LGPPL) 8. Lanco Hydro Power Ventures Private Limited (LHPVPL) 9. Telesto Properties Private Limited (TePPL) 10. Cordelia Properties Private Limited (CPPL) 11. Dione Properties Private Limited (DPPL) 12. Deimos Properties Private Limited (DePPL) 13. Pearl Farms Private Limited (PFPL) 14. Uranus Projects Private Limited (UPPL) 15. Neptune Projects Private Limited (NPPL) 16. Vamshi Industrial Power Limited (VIPL) 17. Vamshi Hydro Energies Private Limited (VHEPL) 18. Lanco Hydro Energies Private Limited (LHEPL) 19. Mercury Projects Private Limited ( MPPL ) 20. Lanco Wind Power Private Limited (LWPPL) 21. Lanco Solar Private Limited (LSPL) 22. Lanco Vidarbha Thermal Power Private Limited (LVTPPL) (Earlier Lanco Mahanadi Power Private Limited) 23. Amrutha Power Private Limited (APPL) 24. Spire Rotor Private Limited (SRPL) 25. Lanco Infratech ( 26. Lanco Enterprise PTE Limited (LEnPL) 27. P.T. Lanco 28. Leda Properties Private Limited (LPPL) 29. Thebe Properties Private Limited (ThPPL) 30. Jupiter Infratech Private Limited (JIPL) 31. Coral Orchids Private Limited (COPL) 32. Uranus Infratech Private Limited (UIPL) 33. Cressida Properties Private Limited (CrPPL) |
CAPITAL STRUCTURE
AS ON 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
500000000 |
Equity shares |
Rs. 1/- each |
Rs.5000.000millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
2407804920 |
Equity shares |
Rs. 1/- each |
Rs.
2407.800Millions |
|
|
Less: Amount Receivable from LCL Foundation Employees Stock Option
Plan (ESOP) Trust |
|
Rs. 22.330
millions |
|
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Total |
|
Rs. 2385.470 Millions |
NOTE: (Out of the above shares 15,81,24,443 Equity shares of
Rs. 10/- each were allotted as fully paid-up by way of Bonus Shares from
capitalisation of Securities Premium).
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
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1] Share Capital |
2385.470 |
2198.340 |
2197.930 |
|
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
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3] Reserves & Surplus |
30316.250 |
18570.390 |
13733.120 |
|
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
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5] ESOP Outstanding |
746.010 |
207.460 |
0.000 |
|
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6] Minority Interest |
7108.190 |
7032.830 |
0.000 |
|
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NETWORTH |
40555.920 |
28009.020 |
15931.050 |
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LOAN FUNDS |
|
|
|
|
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1] Secured Loans |
75619.080 |
52472.700 |
2278.830 |
|
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2] Unsecured Loans |
7994.690 |
3497.040 |
3249.840 |
|
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TOTAL BORROWING |
83613.770 |
55969.740 |
5528.670 |
|
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DEFERRED TAX LIABILITIES |
1003.030 |
174.810 |
171.010 |
|
|
|
|
|
|
|
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TOTAL |
125172.720 |
84153.570 |
21630.730 |
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APPLICATION OF FUNDS |
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|
|
|
|
|
|
|
|
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FIXED ASSETS [Net Block] |
50777.300 |
16251.740 |
1788.180 |
|
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Capital work-in-progress |
13280.880 |
29093.540 |
814.220 |
|
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Expenditure during construction period, pending allocation |
5956.410 |
8793.250 |
0.000 |
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|
|
|
|
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INVESTMENT |
20228.920 |
9836.860 |
16535.500 |
|
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
16267.080
|
13222.940
|
1559.720 |
|
|
Sundry Debtors |
22269.970
|
11943.450
|
5847.810 |
|
|
Cash & Bank Balances |
9627.710
|
9904.530
|
4259.390 |
|
|
Other Current Assets |
74.290
|
52.820
|
23.960 |
|
|
Loans & Advances |
21800.290
|
16385.720
|
14329.480 |
|
Total
Current Assets |
70039.340
|
51509.460 |
26020.360 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
22369.270
|
16962.230
|
23348.030 |
|
|
Other Liabilities |
11745.830
|
13829.370
|
0.000 |
|
|
Provisions |
995.030
|
539.680
|
179.500 |
|
Total
Current Liabilities |
35110.130
|
31331.280
|
23527.530 |
|
|
Net Current Assets |
34929.210
|
20178.180
|
2492.830 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
125172.720 |
84153.570 |
21630.730 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
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SALES |
|
|
|
|
|
|
|
Income |
58866.990 |
40825.860 |
15672.990 |
|
|
|
Other Income |
1115.150 |
150.610 |
363.260 |
|
|
|
TOTAL (A) |
59982.140 |
40976.470 |
16036.250 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Construction and Operating Expenses |
34564.900 |
25978.930 |
4485.050 |
|
|
|
Other operating expenses |
11868.180 |
6921.990 |
7090.120 |
|
|
|
Salaries, Wages and other employee benefits |
1896.060 |
1199.550 |
503.780 |
|
|
|
Managerial Remuneration |
117.190 |
114.250 |
48.380 |
|
|
|
Auditor’s Remuneration |
10.780 |
6.470 |
5.510 |
|
|
|
Other Expenses |
1735.250 |
933.560 |
471.690 |
|
|
|
Provision for Debts |
11.640 |
0.000 |
0.000 |
|
|
|
TOTAL (B) |
50204.000 |
35154.750 |
12604.530 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
9778.140 |
5821.720 |
3431.720 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1979.400 |
1386.120 |
344.750 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
7798.740 |
4435.600 |
3086.970 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
597.710 |
405.260 |
116.150 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
7201.030 |
4030.340 |
2970.820 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
2337.210 |
1381.660 |
969.060 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
4863.820 |
2648.680 |
2001.760 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
5853.820 |
3205.140 |
NA |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
10717.640 |
5853.820 |
NA |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
|
NA |
NA |
6.860 |
|
|
TOTAL EARNINGS |
NA |
NA |
6.860 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Engineering goods |
NA |
NA |
3425.720 |
|
|
|
Capital Goods |
NA |
NA |
223.20 |
|
|
TOTAL IMPORTS |
NA |
NA |
3648.920 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
2.05 |
1.33 |
9.48 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
10755.100 |
10950.600 |
20271.100 |
|
Total Expenditure |
8882.900 |
9871.400 |
17500.000 |
|
PBIDT (Excl OI) |
1872.200 |
1079.200 |
2771.100 |
|
Other Income |
157.300 |
612.000 |
122.400 |
|
Operating Profit |
2029.500 |
1691.200 |
2893.500 |
|
Interest |
806.300 |
881.300 |
734.100 |
|
PBDT |
1223.200 |
809.900 |
2159.400 |
|
Depreciation |
150.500 |
178.100 |
170.700 |
|
Profit Before Tax |
1072.700 |
631.800 |
1988.700 |
|
Tax |
359.500 |
173.900 |
653.100 |
|
Profit After Tax |
713.200 |
457.900 |
1335.600 |
|
Net Profit |
713.200 |
457.900 |
1335.600 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
8.10 |
6.46 |
12.48 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
12.23 |
9.84 |
18.53 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
5.96 |
10.38 |
10.68 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.17 |
0.22 |
0.19 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.92 |
1.48 |
1.48 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.99 |
1.28 |
1.11 |
LOCAL AGENCY FURTHER INFORMATION
Operations Review
On a Consolidated basis the Company has reported Gross Revenues of Rs.82159.680 Millions as against Rs.60614.450 Millions of Revenues registered in the Previous Year up by 36%. Total Expenditure for the Year was Rs.72838.150 Millions as against Rs.55084.330 Millions in the Previous Year an increase of 32% on the back of increased execution activities of various projects. The Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) amounted to Rs.16354.440 Millions while the same was Rs.8788.410 Million for the Previous Year i.e. an increase of 86%. The Profit Before Taxation stood at Rs.9321.530 Millions, an increase of 69% as compared to Rs.5530.120 Millions in the Last Year.
The Net Profit After Tax after adjustment of Minority Interest and Share of Profits of Associates was Rs.4585.480 Millions as against Rs.2803.570 Millions for the Previous Year, increase by 64%. Gross Interest and Finance charges on consolidated basis amounted to Rs.3554.110 Millions in comparison to Rs.2184.900 Millions due to increase in loans and Working Capital Requirements for Project Execution.
Subsidiary Companies
During the Year – (1) Coral Orchids Private Limited, (2)
Cressida Properties Private Limited, (3) Jupiter Infratech Private Limited, (4)
Leda Properties Private Limited, (5) Thebe Properties Private Limited, (6)
Uranus Infratech Private Limited, (7) Lanco Enterprise Pte. Limited,
During the year, the names of the following Subsidiaries have been Changed (1) Lanco Power Trading Limited (Formerly Lanco Electric Utility Limited), (2) Lanco Amarkantak Power Limited (Formerly Lanco Amarkantak Power Private Limited), (3) Lanco Vidarbha Thermal Power Limited (Formerly Lanco Mahanadi Power Private Limited).
MANAGEMENT'S
DISCUSSION AND ANALYSIS:
Industry Structure
and Developments
ECONOMIC OVERVIEW:
The Indian economy made a strong rebound in the FY 2009-10
as government’s stimulus packages took hold, after facing slowdown in the second
half of the FY 2008-09.
It is true the Indian economy felt the lingering impact of
the global slowdown in the FY 2009-10 too. For example, the export sector
continued to report negative growth until November. However, a positive aspect
of the global recession for
However, the country had to battle with unusually high food inflation in the wake of poor monsoon, which may ease soon as the country is expected to have a good monsoon this year.
As per national accounts data, the Indian economy returned
to strong growth level in the first quarter of FY 2009-10 and continued the
strong momentum with the real GDP rising by 8.6% yoy in the Jan-March quarter.
Earlier data revisions were also released; the Oct- December growth rate was
revised up to 6.5%, and as a result, annual average real GDP growth rate for FY
2009-10 was 7.4% (6.7% in the previous year). This marks a resilient growth
performance for
Planned Capacity
Addition
The Government has envisaged an ambitious target of providing “Power for All” by 2012. In the Eleventh Five year plan, a capacity addition of 78,700 MW was targeted. At the end of the Tenth Plan, the installed capacity stood at 132,329 MW. The additional capacity planned in the Eleventh Plan is close to 60% of the total installed capacity at the end of the Tenth Plan.
OPPORTUNITIES:
With the rapid growth of the economy in recent years, the need of adding capacity to overcome infrastructural constraints has increased. Traditionally, power, railways, roads, ports, airports and telecommunications were the exclusive domain of the government. However, policies have changed gradually over the past two decades as bridging the widening gap between demand and supply in infrastructure assumed prominence on the government’s agenda. Government has taken key policy initiatives to attract private investment into the sector.
Power:
The National Electricity Policy (NEP), 2005 recognizes electricity as a “basic human need” and targets a rise in per capita availability to 1,000 units per person by the end of 2012.
Per Capita power consumption has gone up from 567
units in 2003 to 704 unit in 2008. To fulfill the objectives of the NEP, a
capacity addition of 78,700 MW is envisaged during the Eleventh Five Year Plan.
The power sector is expected to grow at 9.5 per cent per annum.
In power sector, the year 2009-10 accounted for the highest capacity addition, i.e. 9,585 MW in a single year in the last 60 years. Altogether in the 11th five-year plan 62,302 MW capacity is likely to be added in the power sector, as against the target of 78,700 MW. As stated by Hon’ble Minister of Power, Mr. Sushil Kumar Shinde, while addressing the Construction Summit 2010, the government is now planning to set the target of achieving 1,00,000 MW capacity addition in the 12th Five Year Plan. 60% of which is expected to be added by the private sector.
With the Indian economy on a high growth trajectory, bridging demand-supply gap is going to be a serious challenge in coming years. The Electricity Act, 2003 stipulates long-term open access to private power producers for inter-state transmission of electricity. The sector has attracted private investment.
Power trading market in the country is also growing fast. This offers scope for private developers to sell power in the merchant market through short-term contracts.
The present operating capacity of the group is 1,349 MW, which is expected to increase to 9311 mw on completion of the 7,962 MW under construction. There are major opportunities emerging for Lanco in this sector keeping in mind the power addition targets for the XI and XII Five Year Plans
Transmission and
Distribution:
Power Trading:
The calendar year 2009 witnessed consolidation of the
short-term power market in
On price front, although the year witnessed highest ever prices for electricity transacted through power exchanges and trading licensees, especially in the months of April and August 2009; overall the weighted average price of electricity transacted through short term market in the year 2009 was lower as compared to the price in the year 2008.
Of the total electricity generation in
In volume terms (kWh) the size of the short term market in
The weighted average price of electricity transacted through power exchanges was Rs. 5.73 per kWh and through trading licensees was Rs. 6.41 per kWh in the year 2009. The corresponding values for the year 2008 were Rs. 7.57 per kWh and Rs. 7.04 per kWh, respectively.
There has been robust growth in the electricity trading from 2005-06 which is evident from the chart. Trading has increaed from 14 billion units in 2005-06 to 27 billion units in 2009-10. Lanco Power Trading Limited, the power trading arm of LITL, performed well during the year 2009-10 and traded total 4,269 Mus of power with a net turnover of Rs. 19,712 million.
Roads:
The Eleventh Five Year Plan places high priority to the expeditious completion of works approved under the different phases of the NHDP. For the roads and bridges sector, the Eleventh Five Year Plan envisages a total investment of Rs. 3141520.000 million. Of this, the shares of the Centre, the States and the private sector are expected to be 34231.800 and 34 per cent, respectively.
With a view to expediting the progress of the NHDP, the Ministry of Road Transport and Highways has set a target of completion of 20 km of NHs per day, which translates to 35,000 km during the next five years (2009-14) at the rate of 7,000 km per year. The NHAI formulated Work Plans (Work Plan I & II) for awarding 12,000 km each during the years 2009-10 and 2010-11. These Plans lay down a specific timeframe for various activities and are being monitored very closely at various levels. Work Plan I (2009-10) covers balance stretches of NHDP Phases II, III and V. So far, 14 projects for a length of about 1,300 km have already been awarded, bids for 20 projects covering a length of about 2,000 km have been received and are under process and another 23 projects for a length of about 1,700 km are presently on offer.
To fund the implementation of NHDP, a part of the fuel cess is allocated to the NHAI. The fund allocated from the cess is leveraged to borrow additional funds from the domestic market.
The Government of India has also taken loans for financing various projects under the NHDP from the World Bank (US$ 1,965 million), Asian Development Bank (ADB) (US$ 1,605 million) and Japan Bank for International Cooperation (32,060 million yen), which are passed on to the NHAI partly in the form of grant and partly as loan. The NHAI has also negotiated a direct loan of US $165 million from the ADB for one of its projects.
Currently Lanco is developing two road projects and expects more opportunities in this area. Both the road projects will commenceoperation from FY 2010-11.
Real Estate:
In FY 2009-10, all the major players in the real estate business strived to overcome from the downturn of economic scenario of 2009. However, long-term growth story is expected to remain intact, as the rise in standards of living and disposable incomes will lead to a robust demand for Real Estate, both Residential and Commercial properties.
According to the Confederation of Real Estate Developers’
Associations of India (CREDAI), the affordable housing segment is set to play
an important role in
Moreover, 2010 is expected to be a positive year for the real estate sector. The revival is expected to be driven by infrastructure growth, which, in turn, can accelerate real estate activities both in the residential as well as commercial spaces.
Currently, the Company is developing Lanco Hills at
Discussion on
Financial Performance with respect to operational performance:
Company Overview:
The Company is an integrated infrastructure development
company in
The Company remains focused on
Performance Overview:
Construction and EPC
business:
The Company’s business model provides integrated EPC and construction services in the infrastructure sector.
Power Business:
Power Generation
The power business, which is mostly undertaken through special purpose vehicles, is expected to contribute significantly to the company’s income and profits in coming years. The Group has a portfolio of 9,311 MW of power projects, of which about 1,349 MW is in operation and the rest under construction.
Infrastructure
Projects:
The Company is developing two road projects in the state of Karnataka, which have a combined length of approx. 160 km. Currently, construction activities are in progress and are expected to be completed by FY 2010-11.
.
Property Development:
Lanco Hills project (LHTPPL), located in Manikonda of
Hyderabad and spread over 100 acres, is one of
LHTPPL started work at the project in August 2007. Construction work for 4.00 million square feet of residential space and 0.50 million square feet of office space is progressing well. Residential project is expected to be completed in the fiscal year 2010-11.
Geographical
Diversification:
The Company is geographically diversified and it is a
conscious effort to take advantage of the opportunities provided across he
Contingent
Liabilities
a) Sales Tax/Entry Tax Demands disputed by the Company, under appeal
Rs. 2.94 Millions (2009: Rs 2.94 Millions).
b) Income Tax Demands disputed by the Company relating to
disallowances made in various assessment proceedings, under appeal Rs. 42.22
Millions (2009: Rs. 42.22 Millions).
c) Service Tax demands disputed by the Company relating to
applicability of service tax to various services, under appeal works out to Rs.
356.05 Millions (2009: 197.38 millions )
d) Corporate guarantees given to Financial Institutions, Banks and
other group companies Rs. 38757.820 Millions (2009: Rs.21807.76 Millions).
FIXED ASSETS
- Goodwill
- Buildings
- Plant and
Machinery
- Office
Equipment
- Furniture and
Fittings
- Vehicles
STANDALONE FINANCIAL RESULTS FOR THE QUARTER ENDED DECEMBER 31, 2010
(Rs.
In millions)
|
Particulars |
Quarter Ended 31.12.2010 |
Nine Months Ended 31.12.2010 |
|
|
Unaudited |
Unaudited |
|
1. (a) Net Sales /Income from Operations |
20106.300 |
41364.300 |
|
1. (b) Other Operating Income |
164.800 |
1133.700 |
|
Total Income |
20271.100 |
42498.000 |
|
2. Expenditure : |
|
|
|
a) (Increase)/Decrease in stock in trade and work in progress |
1030.600 |
(1734.900) |
|
b) Consumption of Materials and construction expenses |
15030.400 |
34079.500 |
|
c) Employee Cost |
955.800 |
2728.300 |
|
d) Depreciation |
170.700 |
499.300 |
|
e) Other Expenditure |
483.200 |
1259.000 |
|
f) Total (2) |
17670.700 |
36831.200 |
|
3. Profit/ (Loss) from Operations before Other Income, Interest and Exceptional Items (1-2) |
2600.400 |
5666.800 |
|
4. Other Income |
122.400 |
370.500 |
|
5. Profit/ (Loss) before Interest and Exceptional Items (3+4) |
2722.800 |
6037.300 |
|
6. Interest (Net) |
734.100 |
2344.200 |
|
7. Profit/ (Loss) after Interest but before Exceptional Items (5-6) |
1988.700 |
3693.100 |
|
8. Exceptional Items |
- |
- |
|
9. Profit / (Loss) from Ordinary Activities before tax (7-8) |
1988.700 |
3693.100 |
|
10. Tax expense |
653.100 |
1186.500 |
|
11. Net Profit / (Loss) from Ordinary Activities after tax (9-10) |
1335.600 |
2506.600 |
|
12. Extraordinary items (net of tax expense Rs. Nil) |
-- |
-- |
|
13. Net Profit / (Loss) for the period (11-12) |
1335.600 |
2506.600 |
|
14. Paid-up equity share capital (Face Value - Re.1/- per share) |
2387.200 |
2387.200 |
|
15. Reserves excluding Revaluation Reserve |
|
|
|
16. Earnings Per Share (EPS) |
|
|
|
(a) Basic and Diluted |
0.57 |
1.08 |
|
(b) Basic and Diluted – Weighted Average |
0.57 |
1.07 |
|
17. Public shareholding : |
|
|
|
- Number of shares |
771750920 |
771750920 |
|
- Percentage of Shareholding |
32.05 |
32.05 |
|
18. Promoters and promoter group Shareholding : |
|
|
|
a) Pledged/Encumbered |
|
|
|
- Number of shares |
301524250 |
301524250 |
|
- Percentage of shares (as a % of the total shareholding of promoter and promoter group) |
18.43 |
18.43 |
|
- Percentage of shares (as a % of the total share capital of the company) |
12.52 |
12.52 |
|
b) Non-encumbered |
|
|
|
- Number of Shares |
1334529750 |
1334529750 |
|
- Percentage of shares (as a % of the total shareholding of promoter and promoter group) |
81.57 |
81.57 |
|
- Percentage of shares (as a % of the total share capital of the company) |
55.43 |
55.43 |
SEGMENT- WISE REVENUE, RESULTS AND CAPITAL EMPLOYED UNDER CLAUSE 41 OF
THE LISTING AGREEMENT - STANDALONE
(Rs.
In millions)
|
Particulars |
Quarter Ended 31.12.2010 |
Nine Months Ended 31.12.2010 |
|
|
Unaudited |
Unaudited |
|
1. Segment Revenue |
|
|
|
a. EPC and Construction |
20223.400 |
42002.600 |
|
b. Power |
9.900 |
72.200 |
|
c. Infrastructure Development |
37.800 |
423.200 |
|
d. Unallocated |
0.000 |
0.000 |
|
Total |
20271.100 |
42498.000 |
|
Less: Inter-segment Revenue |
-- |
-- |
|
Net Sales / Income from Operations |
20271.100 |
42498.000 |
|
2. Segment Results |
|
|
|
a. EPC and Construction |
3092.200 |
6633.500 |
|
b. Power |
(0.100) |
41.200 |
|
c. Infrastructure Development |
5.700 |
63.500 |
|
d. Unallocated |
(497.400) |
(1071.400) |
|
Total |
2600.400 |
5666.800 |
|
Less: (i) Interest (Net) |
(734.100) |
(2344.200) |
|
(ii) Other Un-allocable Expenditure net of Un-allocable Income |
122.400 |
370.500 |
|
Total Profit / (Loss) before Tax |
1988.700 |
3693.100 |
|
3. Capital Employed
(Segment Assets-Segment Liabilities) |
|
|
|
a. EPC and Construction |
(23536.300) |
(23536.300) |
|
b. Power |
565.500 |
565.500 |
|
c. Infrastructure Development |
79083.700 |
79083.700 |
|
d. Unallocated |
(22108.900) |
(22108.900) |
|
|
|
|
|
Total |
34004.000 |
34004.000 |
AS PER WEBSITE
DETAILS
PROFILE:
Subject is one of the fastest growing Integrated Infrastructure Enterprises of India, operating across a synergistic span of verticals comprising Power Generation, Power Trading, Non-Power Infrastructure, Construction, EPC, Property Development and Renewables (Solar and Wind).
Subject‘s current market capitalisation is approximately Rs. 120000.000 millions C (USD 2.59 billion), of which about 68 % equity stake is held by its promoters. Its gross revenue as on March 2009 was over Rs. 60000.000 millions (USD 1.3 billion).
Subject is fast emerging as one of the leading private
sector power developers in
A people driven organization, Lanco operates from 20 States in
The year 2010 is being celebrated as Lanco's Silver Jubilee Year. It has been
twenty five years since the founder chairman L Rajagopal, taking inspiration
from his uncle Lagadapati Amarappa Naidu, began his career as an entrepreneur.
Lanco has risen to its present level on the strength of their vision and
inspiration and under the leadership of L Madhusudhan Rao, the Chairman of Lanco
Group
PRESS RELEASE:
December21, 2010:
Lanco Infratech
Limited bags Rs 41000.000 Millions EPC Contract
Lanco Infratech Limited (LITL), one of India’s
fastest growing integrated infrastructure enterprises, has been awarded a
Rs.4100 Crore EPC Contract by a subsidiary of Moser Baer Projects Private Limited
for execution of its coal based 2x600 MW Power Project through
International Competitive Bidding (ICB).
The contract to this effect was formally
signed on December 20, 2010 at
Lanco has already received its Notice to
Proceed (NTP) and a dedicated project team is already in place. Significant
work has already been done. This is the first ever contract for LITL-EPC
Division for full scope of EPC works including the Main Plant for an external
client.
Commenting on the occasion, Mr. Manocha of
LITI-EPC Division, said, construction of power projects is the core competence
of LITL. This is an important milestone for LITL. It may be recalled that in
July this year we have bagged a cortract from Mahagenco for their 3X660 MW
Koradi Project for BOP package while this is the first ever contract for LITL
EPC division for full scope of EPC works including the Main plant for an
external client.
We have been looking at expanding capabilities
to take contracts from external clients and this order will help us further
strengthen our foothold in the space and at the same time we remain committed
with the core competence of Lanco which is deputing experienced team for managing
contracts during all phases of a project, while meeting the highest
international standards”.
About Lanco Infratech Limited and LITI EPC Division:
Lanco Infratech Limited (LITL) is one of the
fastest growing Integrated Infrastructure Enterprises of India, operating
across a synergistic span of verticals comprising Power Generation both Hydro
and Thermal, Power Trading, Non-Power Infrastructure, Construction, EPC,
Property Development and Renewables). Lanco is fast emerging as one of the leading
private sector power developers in
LITL EPC division provides engineering, procurement,
construction, project management and commissioning services on a Turnkey basis
to the Power Sector. It has a highly experienced engineering and procurement
teams having excellent relations with critical and core equipment
manufacturers. The Division has a wide range of experience in construction of
both sub-critical (300/600MW) and supercritical units(660MW) power plants.
Besides it also has presence in
MTPA
Lanco Infratech Limited to develop 5 MW Solar PV project and 100 MW
Solar thermal project in Rajasthan
New Delhi, December 20, 2010; Lanco Infratech
Limited (LITL), Flagship company of Lanco Group, one of the fastest growing
business conglomerates in India with interests in power, construction and EPC, infrastructure and renewable, today
announced that it has received Letters of Intent (LOIs) from NTPC Vidyut Vyapar
Nigam Limited (NVVN) for development of a 5MW solar PV project and a 100MW
solar Thermal project in the state of Rajasthan under the first phase of the
National Solar Mission.
Lanco completed its first 5MW project in
“We are very excited with the recent
developments in the sector in
“Lanco stands at the forefront in solar in
Lanco is also offering turnkey EPC services to
other Solar power developers and is looking to build 300-500MW of Solar Thermal
and Solar PV plants over the next 2-3 years.
About Lanco
Lanco Infratech Limited is one of
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper payments
to government officials for engaging in prohibited transactions or with
designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l Anti-Money
Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws, regulations
or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.59 |
|
|
1 |
Rs.73.44 |
|
Euro |
1 |
Rs.64.81 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
65 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this report.
The assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.