KAPCO performs exceptionally, profits jump by 78% YoY

April 22, 2020 (MLN): The ongoing fiscal year has been delightful for Kot Addu Power Company Limited (KAPCO), as its profits after tax for the nine months ended on March 31st, 2020, rose remarkably by 78% YoY to Rs 17.77 billion compared to profits of Rs 9.99 billion earned in the same period of last year.

This has reflected in company’s earnings per share which grew from Rs 11.35 per share to Rs 20.19 per share.

This exceptional rise in company’s profits was mainly on the back of significant rise in other income by 59% YoY to Rs 16.65 billion from Rs 10.47 billion in combination with higher gross profits of Rs 15.67 billion.

 The rise in company’s other income was primarily due to decline in overdue receivables by 5%YoY to Rs 101 billion (as of Dec’19) and higher interest rate.

Despite higher RLNG prices during the period, the revenues of the company witnessed a meagre growth as it surged by only 2.6% YoY, this was attributable to lower dispatches on account of low demand in the country.

Furthermore, on the cost front, Finance cost of the company increased by 6.3% YoY while its tax expenses witnessed a considerable growth of 62.6% YoY which put a limit to company’s profitability.

Profit and Loss Account for the Quarter ended March 31, 2020 (Rupees '000)

 

Mar-20

Mar-19

% Change

Sales

 56,396,719

 54,978,275

2.58%

Cost of sales

 (40,720,742)

 (44,119,547)

-7.70%

Gross profit

 15,675,977

 10,858,728

44.36%

Administrative expenses

 (670,340)

 (533,038)

25.76%

Other operating expenses

 –  

 (8,922)

Other income

 16,658,928

 10,477,645

58.99%

Profit from operations

 31,664,565

 20,794,413

52.27%

Finance cost

 (6,937,448)

 (6,525,932)

6.31%

Profit before tax

 24,727,117

 14,268,481

73.30%

Taxation

 (6,953,259)

 (4,276,366)

62.60%

Profit for the year

 17,773,858

 9,992,115

77.88%

Earnings per share – basic and diluted (Rupees)

 20.19

 11.35

77.89%

 

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Posted on: 2020-04-22T16:02:00+05:00

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