KARACHI: Kot Addu Power Company's (Kapco) profit surged 23.5% to Rs13.11 billion mainly due to a notable drop in the cost of sales and surge in other income in the year ended June 30, 2019.
The power producing firm had registered a profit of Rs10.62 billion in the preceding year, according to a company notification sent to the Pakistan Stock Exchange (PSX) on Tuesday.
Earnings per share increased to Rs14.90 in FY19 compared to Rs12.06 in the previous year.
The board of directors of the company recommended a final cash dividend of Rs3 per share. It was in addition to the interim dividend of Rs1.50 per share that had already been paid.
The new entitlement will be paid to the shareholders whose names appear in the register of members on October 21, 2019.
Kapco's share price dropped Rs1.07, or 3.29%, to Rs31.43 with trading in 4.29 million shares at the PSX.
Sales of the power producer dropped almost 8% to Rs84.83 billion in the year under review compared to Rs91.92 billion in the preceding year.
However, a decline of over 10% in the cost of sales helped the company earn higher profit in FY19. The cost fell to Rs70.63 billion in the year compared to Rs78.54 billion last year.
"Sales recorded a decline of 8% on the back of 33% fall in (power) dispatches," Arif Habib Limited said in post-result comments.
Gross margins went up 219 basis points to 16.7% in FY19. The rise in gross margins came due to 19% rupee depreciation and a lower load factor, the research house said.
Other income of the company increased 46% to Rs13.78 billion compared to Rs9.45 billion last year. The surge in the income was due to a rise in overdue receivables.
On the flip side, the finance cost increased 34% to Rs8.31 billion compared to Rs6.19 billion last year.
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