Lanco Infratech Limited -Q4 & FY16 Result Annoucement

May 28, 2016

During the Quarter

§   Kondapalli got Gas allocation under Gas pooling mechanism (for the period Apr’16 to Sept’16) to run Ph#2 & Ph#3 at 30% load.
§   Kondapalli Phase 3B (371 MW) declared COD on 9th January 2016.
§   Amarkantak Unit 2 (300 MW) restarted power supply to Chhattisgarh wef 17th April’16.
§   Babandh (coal fired 1320 MW plant in Odisha) signed FSA for U#1 with Mahanadi Coalfields Limited (MCL)
§   EPC order book (Power , Solar & Others ) stands of Rs.270,794 Mn

Result Update: Consolidated Performance (FY15 numbers are without Udupi to have better Comparison, as Udupi was sold in the Q1 of the current year.)

For the Quarter
§   Gross Revenue before eliminations increased by 65% to Rs.25,864 Mn from Rs.15,719 Mn
§   Cash Profit of Rs.716 Mn vs. Cash loss of Rs.3,957 Mn.
§   Adjusted EBITDA (Excluding Forex)  increased by 134% to Rs.4,242 Mn from Rs.1,809 Mn
§   Reported loss of Rs.2,007 Mn vs. loss of Rs.5,632 Mn.

For the Year
§   Gross Revenue before eliminations increased by 46% to Rs.99,991 Mn from Rs.68,389 Mn.
§   Cash Profit of Rs.4,397 Mn vs. Cash loss of Rs.7,694 Mn.
§   Adjusted EBITDA (Excluding Forex)  increased by 121% to Rs.25,417 Mn from Rs.11,509 Mn.
§   Reported loss of Rs.2,656 Mn vs. loss of Rs.19,753 Mn.
§   Adjusted Net Worth (including Minority Interest) of the company stood at Rs.22,593 Mn at end of March 2016. 


Financial Performance:   (FY15 numbers are without Udupi to have better Comparison, as Udupi was sold in the Q1 of the current year.)     
                                                                                                                                                                                                  Rs. Mn
Particulars
Q4 FY16
Q4 FY15
Change
12M FY16
12M FY15
Change
Gross Revenue*
25,864
15,719
65%
99,991
68,389
46%
Reported Revenue
20,660
14,819
39%
79,914
65,765
22%
Reported PAT
-2,007
-5,632
64%
-2,656
-19,753
87%
Profit Eliminated
1,418
-332
527%
2,717
-283
959%
Adj. PAT* (PAT + Profit Eliminated)
-589
-5,964
90%
61
-20,036
100%
Cash Profit
685
-3,957
117%
4,397
-7,694
57%

*Before inter segment / intra-group elimination



Key Balance Sheet Figures as on 31st March 2016:    
                                                                                                                                                       Rs. Mn
Net Worth (including Minority Interest)

7,567
Add: Profit Eliminated (as per AS 21)

15,026
Adjusted Net Worth

22,593
Gross Debt (of company & subsidiaries ) *

3,65,100
Gross debt of projects under operation
1,81,686

Gross debt of projects under construction
1,83,414

Cash and Cash Equivalent (including subsidiaries)

7,478
Net Debt

3,57,622
Net Debt / Gross Adjusted Net Worth

15.83

*Excludes acquisition debt of Griffin Coal and working capital loans of power companies
Sector Wise Performance:
 

Lanco is present in five sectors
1.       EPC
2.       Power
3.       Solar
4.       Natural Resources
5.       Infrastructure and Property Development  

The EPC sector and the power sector together contributed to 87% of the gross revenues.
·         EPC & Construction sector contributed to 37% of the gross revenue
·         Power sector contributed to 50% of the gross revenues.

1.              Power:
§  Total Outstanding Receivables of Rs.17,816 Mn from various State Electric Utilities as of March 2016
(FY15 numbers are without Udupi to have better Comparison, as Udupi was sold in the Q1 of the current year.)
                                                                                                                                                                                     Rs. Mn
Particulars
Q4 FY16
Q4 FY15
Change
12M FY16
12M FY15
Change
Revenue
13,473
10,667
26%
61,974
46,207
34%
Less: Power Trading
980
1,203
-19%
2,708
4,059
-33%
Net Revenue
12,493
9,464
32%
59,265
42,148
41%
EBITDA
3,517
2,803
25%
22,615
12,015
88%
Less: Power Trading
-1
26
-104%
52
122
-57%
Adjusted EBITDA
3,515
2,776
27%
22,560
11,895
90%
Adj EBITDA Margin       (%)
28%
29%

38%
28%


Details of Power Projects under Operation for the Quarter

Projects
Capacity
Units Generated
PAF
PLF
Total Revenue
EBITDA
PAT
EBITDA Margin
(MW)
(MUs)
%
%
(Rs. Mn)
(Rs.  Mn)
(Rs. Mn)

Kondapalli 1
368
196
96%
24%
2,930
257
-204
9%
Kondapalli 2
366
41
100%
5%
Kondapalli 3A
371
288
100%
36%
Amarkantak 1
300
575
98%
88%
2,949
1,137
-12
39%
Amarkantak 2
300
585
95%
89%
Tanjore
120
143
58%
55%
461
32
-51
7%
Anpara
1200
2,097
86%
80%
6,134
2,180
36
36%
Total
3,025
3,927
90%
59%
12,474
3,606
-231
29%

Details of Power Projects under Operation for the Year

Projects
Capacity
Units Generated
PAF
PLF
Total Revenue
EBITDA
PAT
EBITDA Margin
(MW)
(MUs)
%
%
(Rs. Mn)
(Rs.  Mn)
(Rs. Mn)

Kondapalli 1
368
488
93%
15%
16,013
5,048
1,944
31.5%
Kondapalli 2
366
972
83%
30%
Kondapalli 3A
371
587
100%
25%
Amarkantak 1
300
2,228
94%
85%
8,002
3,040
-1,469
38%
Amarkantak 2
300
762
79%
90%
Tanjore
120
654
89%
62%
2,377
433
121
18.2%
Anpara
1200
8,637
88%
82%
32,633
13,975
5,168
42.8%
Total
3,025
14,328
89%
54%
59,055
22,496
5,763
38.1%
Note : Kondapalli Phase 3B had no operations post COD (9th Jan’2016) due to shortage of Gas.

NETS (Power Trading)
For the Quarter
·         Total 301 MUs traded at an average realization rate of Rs.4.3/Kwh. 157MUs Energy sourced from Anpara sold to TamilNadu at an average realization rate of Rs.5.8/Kwh and 144MUs energy of external parties sold in Exchange at an average realization rate of Rs.2.7/Kwh.    

For the Year
·         Total 1,286 MUs traded at an average realization rate of Rs.4.5/Kwh. 744MUs Energy sourced from Anpara sold to TamilNadu at an average realization rate of Rs.5.33/Kwh and 542MUs energy of external parties sold in Exchange & Bilateral at an average realization rate of Rs.3.36/Kwh.    


2.              EPC
   Rs. Mn
Particulars
Q4 FY16
Q4 FY15
Change
12M FY16
12M FY15
Change
Revenue
7,462
1,740
329%
25,790
13,021
98%
Forex (loss)/Gain
766
261
193%
1,102
-233
573%
EBITDA
1,800
-873
306%
6,114
95
6314%
Adjusted EBITDA
1,034
-1,135
191%
5,012
328
1427%
Adj EBITDA Margin (%)
14%
-65%

19%
3%


Order Book:
§   Current EPC order book stands at Rs.234,116 Mn (Excluding Solar EPC)
§   Internal Projects constitute ~82% of the Power and Construction EPC Order book

3.              Solar:

§   Solar Generation consists of 41 MW
                   Rs. Mn
Particulars
Q4 FY16
Q4 FY15
Change
12M FY16
12M FY15
Change
Revenue
3,817
1,945
96%
6,241
3,428
82%
Forex (loss)/Gain
-7
14
-152%
-90
-44
-104%
EBITDA
692
205
238%
1,335
835
60%
Adjusted EBITDA
699
191
266%
1,425
879
62%
Adj EBITDA Margin (%)
18%
10%

23%
26%

                                                                                                                                                              
§  Solar EPC: Order Book of Rs.36,678 Mn with 60% orders from external parties.




4.              Natural Resources:

Griffin Coal
Production for quarter was 0.66 MT vs 0.51 MT in Q4FY15. Sales for the quarter was 0.67 MT vs. 0.55 MT in Q4FY15. 
§   Average realization for the quarter was ~AUD 43.2 per ton vs. ~AUD 41.9 per ton in Q4FY15.
                  Rs. Mn
Particulars
Q4 FY16
Q4 FY15
Change
12M FY16
12M FY15
Change
Revenue
1,450
1,265
15%
5,003
5,658
-12%
Forex (Loss)/Gain
1,356
-1,707
179%
284
-4,532
106%
EBITDA
1,732
-2,276
176%
-428
-5,730
93%
Adj EBITDA
376
-568
166%
-713
-1,198
41%
Adj EBITDA Margin (%)
26%
-45%

-14%
-21%



5.              Property Development & Infrastructure

Property development consists of the Lanco Hills project at Hyderabad, which is the only Real estate venture of the Group.  During the quarter, Lanco Hills recorded revenue of Rs.499 Mn during the quarter and Rs.1,646 Mn during the year and sold 25 units during the quarter & 104 Units during 12Months.

Under infrastructure, Current portfolio consists of highway projects of about 163 km length, for which the Concession Agreements have been signed with the National Highway Authority of India (NHAI):

Distance
Status
Neelamangla Junction (Bangalore) – Devihalli (NH-48)
82 km
Toll collection revenue at Rs. 150 Mn during the quarter
Bangalore – Hoskote – Mulbagal (NH-4)
81 Km
Toll collection revenue at Rs. 160 Mn during the quarter
   Rs. Mn
Particulars
Q4 FY16
Q4 FY15
Change
12M FY16
12M FY15
Change
Revenue
812
430
89%
2,818
1,845
53%
EBITDA
140
155
-10%
768
793
-3%
EBIDTA Margin (%)
17%
36%

27%
43%




About Lanco
Lanco Infratech Limited, one of the India’s largest integrated infrastructure developers, is headquartered in New Delhi Region and has employee strength of over 3,700.  It has subsidiaries and divisions across a synergistic span of 5 Business verticals. These include EPC, Power, Natural Resources, Solar and Infrastructure. It has an adjusted net-worth of Rs.22,593 Mn.
Lanco Infratech’s projects, both operational and under construction & Development, are spread across India. At present, the power portfolio includes an installed capacity of 3,460 MW and another 5,956 MW under various stages of Construction & Development.
The EPC division of the company is executing various orders worth more than Rs.270,794 Mn. A member of UN Global Compact, Lanco Infratech is recognised for its Corporate Social Responsibility initiatives led by the Lanco Foundation.