KAPCO’s profit rises 84% to Rs5 billion

Support comes from higher sales, income from other business

KARACHI: Kot Addu Power Company Limited’s (Kapco) profit surged 84% to Rs5.03 billion in the quarter ended September 30, 2019 on the back of increase in sales and income from other than core business.

Earnings had been recorded at Rs2.74 billion in the same quarter of last year, according to a notification sent to the Pakistan Stock Exchange (PSX) on Tuesday.

Earnings per share increased to Rs5.72 in the Jul-Sept 2019 quarter compared to Rs3.11 in the corresponding quarter of last year.

Sales of electricity increased 12% to Rs35.36 billion compared to Rs31.59 billion last year. The rise in sales was driven by an increase of 2% in dispatches (2,103 gigawatt-hours) on a year-on-year basis, 12% higher furnace oil prices, 8% higher re-gasified liquefied natural gas (RLNG) prices and rupee depreciation, Arif Habib Limited said in post-result comments.

Other income of the company jumped 73% year-on-year to Rs4.36 billion compared to Rs2.52 billion last year due to higher interest rates. However, overdue receivables declined by 2% to Rs94 billion on June 30, 2019, it said.

Finance cost rose 9% year-on-year to Rs2.29 billion compared to Rs2.09 billion last year amid a 9% increase in short-term borrowings (Rs54.2 billion on June 30).

Gross margins rose 332 basis points to 14.8% during the quarter under review.

“The rise in gross margins was mainly on account of 35% year-on-year higher dollar indexation (value of dollar against a basket of other major currencies of the world),” it said.

In line with a significant surge in sales, the cost of sales increased around 8% to Rs30.14 billion compared to Rs27.97 billion last year.

The company paid Rs2.05 billion in taxes on profit compared to Rs1.13 billion in the same quarter of previous year.

Administrative expenses rose to Rs206.84 million in the quarter under review compared to Rs176.98 million in the same quarter of previous year. During the day, Kapco’s share price improved 2.04%, or Rs0.61, to Rs30.54 with trading in 697,500 shares at the PSX.

Published in The Express Tribune, October 30^th, 2019.

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