KAPCO: Bottom line withers to Rs2.11bn in 1QFY23

October 26, 2022 (MLN): Kot Addu Power Company Limited (PSX: KAPCO) has announced its 1QFY23 financial result today wherein the company recorded a profit after tax of Rs2.11 billion (EPS: Rs2.40), showing a decline of 7.5% YoY as opposed to Rs2.28bn (EPS: Rs2.59) achieved in the same period last year. 

This decline in profitability was mainly due to lower margins thanks to lower capacity payments.

During the first quarter of the ongoing fiscal year, the net sales of the company witnessed a 33% YoY decrease to clock in at Rs22.8bn. The cost of sales dropped by 35% YoY which led the gross margins to expand to 6.89% YoY YoY from 3.8% YoY in 1QFY22.

On the cost front, the other expenses stood at Rs199mn while administrative expenses saw a surge of 47.44% YoY to Rs175.78mn during the said period.

The finance cost of the company also elevated by 2.5x YoY to Rs1.8bn in 1QFY23 as the State Bank of Pakistan (SBP) hiked interest rates amid growing inflation.

On the taxation front, the tax expenses moved up by 12% YoY to Rs1bn in 1QFY23, compared to the same period last year.

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