Debt-ridden Lanco lays off 4,000 in 15 months
Hyderabad: Infrastructure firm Lanco Group trimmed nearly 50 per cent of its 8,000-odd workforce over the last 12-15 months owing to market slowdown. According to company sources, it now employs a little over 4,000.
The company's annual report 2012-13, showed Lanco employed 5,710 on a consolidated basis as on March, 2013 as against 7,914 employees in 2011-12.
According to sources, retrenchments continued in the current financial year, with Lanco, which is weighed down by a consolidated net debt of Rs 34,770 crore as on June, 2013, laying off nearly 400 between April and June, 2013.
'We hired people anticipating new power projects, which didn't materialize. Basically, these are all contract workers and the company had to trim manpower as no new projects tookoff,' said Adi Babu, Lanco CFO.
During 2012-13, the company reduced its employee expenses, including recruitment and training, to Rs 632 crore as against Rs 736 crore a year ago.
'During the year 2012-13, employee benefits expenses decreased by 13 per cent over the previous year. The decrease was on account of a fall in total number of employees in the group due to a slowdown in development of future projects as a result of a slowdown in economic activity in the country,' the official said.
Lanco's consolidated net loss widended to Rs 1,073 crore for the year ended FY13 compared to a net loss of Rs 112 crore a year ago. The net loss in FY13 was despite the company reporting a 25 per cent rise in its income.
Gross interest and finance charges on consolidated basis totalled Rs 2,421 crore in comparision to Rs 1,054 crore due to increase in loans and working capital requirements for project execution.
Lanco Infratech, the holding company of the Group, is currently in the process of corporate debt restructuring for its standalone debt worth Rs 7,500 crore.
News Posted: 4 September, 2013
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