Corporate result: KAPCO's profit jumps 89% to Rs12.5b

Boost seen due to other income originating from overdue receivables

KARACHI: Kot Addu Power Company Limited's (Kapco) profit soared 89% to Rs12.5 billion in nine months ended March 31, 2019, mainly due to a significant boost to other income originating from overdue receivables, according to a bourse filing on Friday.

The independent power producer had recorded a profit of Rs6.6 billion in the same period of last year, the company said in a notification to the Pakistan Stock Exchange (PSX).

Accordingly, the earnings per share surged to Rs14.16 in Jul-Mar FY19 compared to Rs7.50 in the same period of previous year.

The board of directors recommended an interim cash dividend of Rs1.50 per share. The entitlement will be paid to the shareholders whose names appear on the register of members on June 10, 2019.

Kapco's share price increased 2.51%, or Rs1.04, and closed at Rs42.40 with trading in 754,500 shares at the PSX.



Other income grew almost threefold to Rs14 billion in Jul-Mar FY19 compared to Rs4.7 billion in the same period of last year.

However, sales of the company decreased 11% to Rs55 billion compared to Rs61.6 billion.

"Sales witnessed a decline…on the back of 42% fall in dispatches (power sales)," Arif Habib Limited said in comments to its clients.

Also, finance cost increased 38% to Rs6.5 billion compared to Rs4.7 billion.

In the quarter ended March 31, 2019, Kapco's profit rose 59% to Rs3.5 billion (earnings per share Rs3.94) compared to Rs2.2 billion (earnings per share Rs2.51) in the same period of last year.

The brokerage house said net sales decreased 50% to Rs10.8 billion, which was mainly due to 77% decline in dispatches to 385 gigawatt-hours (GWh) during the quarter.

Other income jumped 112% to Rs3.7 billion due to 24% rise in overdue receivables to Rs106 billion as of December 2018, it said.