The good tidings at Lanco Infra seem to be continuing. The company announced its turnaround numbers yesterday and today morning, from a close of Rs.5.33, it opened straight 20% up at Rs.6.39, breaching the upper circuit within seconds of opening.

Thanks to a tax reimbursement and a one-time tariff income, the company could turnaround after a period of three years of consistent loss. Its consolidated net profit for the quarter came in at Rs.99 crore v/s loss of Rs.527 crore in previous Q2.  

The company’s step down subsidiary, Lanco Kondapalli Power received a favourable order from the Supreme Court, directing the AP utilities for MAT reimbursement to the tune of around Rs.175 crore, including interest towards tax component forming part of the tariff for the period FY01 to FY12. This amount was recognized as income in the Q2.

Another step down subsidiary, Lanco Anpara Power received UPERC tariff order to compensate for changes in RFP/PPA conditions in respect of coal supply and power purchase payments. Post this UPERC order, the company went on to recognize Rs.499 crore as one-time tariff income during the current Q2.

The company has said that  Q2 saw a jump of 366% (QoQ) and 126% (YoY) in EPC Revenues of LITL on account of restart of work in the Group's under construction stalled power projects (Amarkantak 3&4, Babandh, Vidarbha and Mandakini - totalling 4036 MW with an investment of about Rs 33,000 crore) Its Kondapalli Phase II & III (1108 MW) have won bids under gas pooling mechanism for operating at 50% PLF from October 1, 2015 to March 31, 2016.

Its net debt stands at Rs.34,989 crore as at 30th Sept 2015.