April 22, 2022 (MLN): Kot Addu Power Company Limited (KAPCO) has announced its 9MFY22 financial result today wherein the company recorded a profit after tax of Rs8.22 billion (EPS: Rs6.35), showing a significant decline of 48.34% YoY as opposed to Rs15.92bn (EPS: Rs18.09) achieved in the same period last year.
This decline in profitability was mainly due to lower margins thanks to lower capacity payments.
The net sales of the company witnessed a 69% YoY jump to clock in at Rs77bn mainly due to a 43% YoY rise in dispatches to 3,315 GWh along with higher FO, HSD, and RLNG prices.
However, an increase in the cost of sales by more than twofold led the gross margins to plunge considerably to 7.03% YoY from 35.87% YoY. The primary reason behind shrunk margins was a decline in Capacity Purchase Price (CPP), said a report by Arif Habib Limited.
On the cost front, the other expenses stood at Rs128.4mn while administrative expenses saw a notable decline of 67% YoY to Rs718mn during the said period.
Meanwhile, the company reported a reduction of 7.3% YoY in finance cost to Rs2.57bn in 9MFY22 as the State Bank of Pakistan (SBP) hiked interest rates in the ongoing fiscal year amid growing inflation.
However, the tax expenses fell by 56% YoY to Rs2.88bn in 9MFY22, which provided some solace to the financial wellbeing of the company.
|
Profit and Loss Account for the Nine months ended March 31, 2022 ('000 Rupees) |
|||
|---|---|---|---|
|
Mar-22 |
Mar-21 |
% Change |
|
|
Sales |
77,088,300 |
45,640,283 |
68.90% |
|
Cost of sales |
(71,666,635) |
(29,267,078) |
144.87% |
|
Gross profit |
5,421,665 |
16,373,205 |
-66.89% |
|
Administrative expenses |
(718,815) |
(872,639) |
-17.63% |
|
Other operating expenses |
(128,409) |
– |
– |
|
Other income |
9,114,580 |
9,335,102 |
-2.36% |
|
Profit from operations |
13,689,021 |
24,835,668 |
-44.88% |
|
Finance cost |
(2,574,244) |
(2,399,343) |
7.29% |
|
Profit before tax |
11,114,777 |
22,436,325 |
-50.46% |
|
Taxation |
(2,887,283,00) |
(6,509,047) |
-55.64% |
|
Profit for the year |
8,227,494 |
15,927,278 |
-48.34% |
|
Earnings per share – basic and diluted (Rupees) |
9.35 |
18.09 |
-48.31% |
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