Power and construction company Lanco Infratech has posted a net profit of Rs 24.38 crore in the quarter ended March 31, 2007, a six-fold increase over the net profit of Rs 3.87 crore posted in corresponding quarter last year on the back of better margins and strong orders from its flagship construction business. Total income during this period increased 120 per cent from Rs 99.44 crore to Rs 220.21 crore. | |
| For the year ended March 2006, Lanco posted a net profit of Rs 73.17 crore, a seven-fold increase over the previous financial's Rs 9.76 crore. Total income during this period increased three-fold from Rs 152.7 crore to Rs 553.39 crore. |
| |
| "Margins have improved by a few percentage points. we are in line with the industry norms now (8-13 per cent), " chairman L Madhusudhan Rao told Business Standard. The company is the front-runner in the race to build the 4,000 mw ultra mega power project at Sasan in Madhya Pradesh. |
| |
| The company expects to maintain growth through the current financial too, though "there isn't too much scope for further improvement in margins. Growth will be in volumes of business," Rao added. Lanco has an order book of over Rs 5,000 crore. |
| |
| According to Suresh Kumar, chief financial officer, the company expects the order-book to increase to Rs 12,000-13,000 crore by the end of the financial year 2008. |
| |
| In financial year 2007, Lanco Infratech, which was listed on the bourses in November 2006, also increased its stake in The Kondapalli power company from 7 per cent to 59 per cent and in Aban Power Company from 11 per cent to 51 per cent, turning both companies into Lanco subsidiaries. This added Rs 135 crore to Lanco's bottom line, Kumar informed. |
| |
| The company's share price was up 2.32 per cent at the Bombay Stock Exchange on Monday to close at Rs 160.95, though it is still far below the listing price of Rs 240. |
| |
|
| |
