Lanco Industries is in the green today on the back of its turnaround numbers for Q3Fy14. The stock which had closed yesterday at rs.24.10, opened higher at Rs.25.50 and it currently remains around the same levels, up over 3.5%. Volumes are up 1.3 times.

The company for Q3FY14 posted a net profit of Rs. 9 crore v/s net loss of Rs. 9 crore in Q3FY13. But turnaround in current fiscal, it already had in Q2FY14 when it posted a net profit at Rs.10 crore; so QoQ, there has actually been a fall in the profit. Net sales rose 23% (YoY) at Rs 257 crore though sequentially, it dropped 3%. Interest outgo during the quarter was higher at Rs.17 crore v/s Rs.14 crore in Q2FY14 and Rs.16 crore in Q3FY13. In the true sense, the company has turned around for 9MFY14 wherein net profit came in at Rs.3 crore v/s net loss of Rs.8 crore in FY13.

The company recently got approval for a CDR to restructure debt worth more than Rs.7,000 crore, following which it would get over Rs.2,500-crore priority loans from its lenders, which in turn will help improve the EPV operations and it might be able to clear pending dues of its vendors. There would be a moratorium on interest payments for fund-based facilities, which would be in place for two years.