LPL announces Rs15 DPS, Profits soar 52.80% in 1HCY23

August 09, 2023 (MLN): Lalpir Power Limited (PSX: LPL) witnessed a 52.80% YoY surge in profitability, achieving a Profit after tax of Rs2.2bn in 1HCY23, up from Rs1.44bn in 1HCY22.

The company has announced an interim cash dividend of Rs.15 per share i.e.,150% for the half year ended June 30, 2023.

Going by the results, the company's top line marked a decline of 61.30% YoY to Rs8.49bn as compared to Rs21.94bn in SPLY.

However, the cost of sales also substantially fell by 70.86% YoY, which improved the gross profit by 65.07% YoY to Rs2.55bn in 1HCY23.

During the period under review, other income marked a massive decline of 93.06% YoY to stand at Rs7.71m in 1HCY23 as compared to Rs111.1m in SPLY.

On the expense side, the company observed an increase in Administrative Costs by 7.71%YoY and other expenses by 27.15% YoY to clock in at Rs92.6m and Rs2.45m respectively during the review period.

The company’s finance costs inflated by 2.05x YoY and stood at Rs262.22m as compared to Rs1.93m in 1HCY22, mainly due to higher interest rates.

At the time of writing, the share of the company is being traded at Rs27.82, up by Rs1.94 or 7.50% on the day.

It is worth noting that International Monetary Fund (IMF) has approved a revolutionary dividend plug-in back scheme to reduce the burden of the gas sector's revolving debt.

This plug-in back scheme is likely to have a sweeping impact, with a projected reduction of a staggering Rs400 billion in the gas sector's revolving debt.

This strategic adjustment will not only reinvigorate the financial health of the sector but also strengthen newfound investor confidence.

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