Lanco Infratech - Result driven by one-offs; maintain HOLD - Emkay

- 4Q13 adj. loss at Rs2.6b was lower than estimate of Rs3.4b loss. Anpara, Kodapalli II, Udupi reported losses, taking total loss in power segment to Rs2.9b from Rs2b in 3Q13

- Reported loss of Rs310mn driven by Rs1.3bn of one-off receipts in EPC business, AUD43mn settlement/prior-period payment from Bluewater for coal price hike

- Mgmt stated that -1) Udupi now getting payment at interim tariff of Rs4.1/u vs. billing of ~Rs4.5/u, 2) receivables improving as UP and Karnataka paid ~Rs3bn & Rs6bn resp. during Mar'13

- Mgmt going slow in construction of new projects to align completion with coal availability and to manage cash flow n Fine-tune FY14 and FY15 estimates for reported FY13 result. Project level issues (including PPA tariffs and dispute) to continue to impact performance. Cash flow management would be a challenge. Maintain Hold with a PT of Rs14/sh.

Source : Equity Bulls

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