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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