Lanco Infratech share price jumps over 8% on power linkage with Haryana discoms

Lanco Infratech share price gained as much as 8.75 per cent in early trade on Monday after the company announced commencement of power supply to Haryana discoms (Photo: PTI)

Lanco Infratech share price gained as much as 8.75 per cent in early trade on Monday after the company announced commencement of power supply to Haryana discoms from its domestic coal based 300 MW Unit #2 of Lanco Amarkantak Power (LAPL), Chhattisgarh.

With the commencement of power supply to Haryana discoms at regulated tariff from this pithead plant, the entire 1,800 MW operating coal based power portfolio of Lanco Infratech is now utilised to full capacity with fuel pass through.

At 9.46 am, the Lanco Infratech share price was trading 5.83 per cent up at Rs 6.53. The scrip opened at Rs 6.20 and had touched a high and low of Rs 6.71 and Rs 6.20, respectively, in trade so far. Sensex was up 49.94 points, 0.19 per cent, at 25,688.05.

L Madhusudhan Rao, chairman, Lanco Infratech in a release said, “The resumption of power supply to Haryana discoms is going to be profit assertive for us in the coming quarters as it will double the revenues of Lanco Amarkantak to around Rs 1,200 crore and increase EBITDA by around Rs 200 crores for full year of operations, and will also have a positive impact on overall financials of Lanco Group.”

Last one week high and low of the scrip stood at Rs 6.60 and Rs 5.85 respectively. The current market capitaliation of the company is Rs 1,575.00 crore.

The promoters holding in the company stood at 70.55 per cent while institutions and non-institutions held 5.02 per cent and 24.43 per cent, respectively.

For the quarter ended September 2015, Lanco Infratech posted net profit of Rs 98.98 crore, up 118.76 per cent, against net loss of Rs 527.48 crore in the corresponding quarter a year ago.

Rao said, “The current fiscal is very good and path breaking for us, we reported a profit after 12 consecutive quarters of losses, a turnaround which was made possible by a noteworthy spurt in EPC revenues and favourable regulatory orders.”