corporate result: KAPCO profit soars 43% to Rs3.11 billion

Rise comes due to significantly higher income from other than core business

KARACHI: Kot Addu Power Company’s (Kapco) profit increased 43% to Rs3.11 billion in the quarter ended September 30, 2018 mainly on the back of significantly higher income from other than the core business.

The power producing firm had registered a profit of Rs2.18 billion in the same quarter of last year. Earnings per share increased to Rs3.54 compared to Rs2.48 in the corresponding quarter last year.

Kapco’s share price improved 1.42%, or Rs0.71, to Rs50.65 with trading in 317,500 shares at the Pakistan Stock Exchange (PSX). Other income surged 120% to Rs3.07 billion compared to Rs1.39 billion, according to the profit or loss account of the firm sent to the PSX.



“The increase in earnings is mainly due to … the rise in other income which is mainly due to the increase in overdue receivables (up 25% as of June 2018),” Arif Habib Limited analyst Rao Aamir Ali said in comments to his clients.

The company recorded 47% growth in sales to Rs31.59 billion compared to Rs21.57 billion last year.

“The rise in sales is due to 11% increase in dispatches (2,065GWh) during 1QFY19. The increase in sales is also backed by higher RLNG-based generation, which has increased to 74% compared to 20% during the same period last year,” the analyst added.

However, most of the sales proceeds were utilised as cost of the sales, which surged over 54% to Rs27.97 billion compared to Rs18.12 billion.

Published in The Express Tribune, October 24^th, 2018.

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