Lanco Cuts Down Workforce by 30% Due to Slowdown

Lanco Infratech, which has interests in infrastructure, power and realty segments, retrenched 30 per cent of its 5,700 workforce during the last financial year due to slowdown in development of some of its projects amid subdued market conditions.

According to the latest annual report of the infra major, the group, which had a workforce of 5,700 by the end of March 2013, cut down its workforce to 4,000 by the end of March this year. By the end of FY12, it had nearly 8,000 employees, the report said.

"During the year 2013-14, employee benefits expenses decreased by 38 per cent over the previous year. The decrease was on account of fall in the total number of employees in the group due to a slowdown in the development of future projects as a result of a slowdown in economic activity in the country," Lanco said in its annual report.

The group spent Rs 353 crore on salaries, allowances and benefits to employees during FY14 as against Rs 549 crore in FY13, as per the data in the annual report.

On a consolidated basis, the company reported gross revenues of Rs 10,597.85 crore in 2013-14 as against Rs 13,887.66 crore in the previous year.

Net loss after tax and adjustment of minority interest and share of profits of associates was Rs 2,273.88 crore, as against Rs 1,073.30 crore for the year 2012-13.

Gross interest and finance charges, on a consolidated basis, amounted to Rs 2,762.12 crore in comparison to Rs 2,421.44 crore due to increase in loans and working capital requirements for project execution, the report said.

On the Griffin Coal Mining Company, which is Lanco's Australian subsidiary, the report said that steps are underway to reach a short-term production target of 5 million tonnes by March 2015.

Production at the mine during 2013-14 was 2.83 metric tonnes with sales of 2.95 metric tonne.

"Capacity enhancement programme has been raised to 15 metric tonne per annum and it is in the planning phase. The company also recently received environmental clearance to develop a new berth (Berth 14 A) at Bunbury port to export coal from Griffin," it said.

However, Griffin Coal suffered a net loss of Rs 714 crore on a Rs 681 crore revenue during the last financial year due to higher construction, development and generation expenses, the annual report said.