KAPCO’s profit soars 65% to Rs6.05b in Jan-Mar

Rise comes on back of marked increase in other income


​ Our Correspondent April 23, 2020
The offloading of shares on the stock market will give billions of rupees to the government for budget financing. PHOTO: KAPCO WEBSITE

KARACHI: Kot Addu Power Company’s (Kapco) profit soared 65% to Rs6.05 billion in the quarter ended March 31, 2020 on the back of a significant rise in other income.

The power-producing company had reported profit of Rs3.67 billion in the same quarter of last year, according to a notice sent to the Pakistan Stock Exchange on Wednesday.

Earnings per share (EPS) of the company came in at Rs6.87 in Jan-Mar 2020 compared to Rs4.17 in the corresponding period of previous year. The company also announced a cash dividend of Rs1.5 per share for its shareholders.

Net sales rose 11% to Rs11.93 billion during the three months under review as opposed to Rs10.76 billion in the same period of last year.

According to a report of Arif Habib Limited, the rise in sales came due to higher re-gasified liquefied natural gas (RLNG) prices, however, dispatches remained low due to overall thin demand in the country.

Gross profit during the Jan-Mar 2020 quarter rose 50% to Rs5.57 billion. The company had reported a gross profit of Rs3.7 billion in the same quarter of last year. Other income increased from Rs3.97 billion in Jan-Mar last year to Rs5.32 billion in the same quarter of current year.

“Other income increased due to tariff true-up along with higher interest rates compared to the same period of last year,” stated Arif Habib Limited. “Overdue receivables decreased by 5% year-on-year to Rs101 billion (as of December 2019).”

Operating profit rose from Rs7.46 billion in the Jan-Mar quarter last year to Rs10.7 billion in the quarter ended March 31, 2020.

On the other hand, finance cost of the company went up to Rs2.18 billion compared to Rs2.13 billion last year. Finance cost increased by 3% year-on-year due to higher interest rates, the research house said.

“Due to surprise earnings for 3QFY20, we revise our earnings estimates to Rs24.94 per share for FY20,” it said.

Nine-month result

In nine months ended March 31, 2020, Kapco’s profit skyrocketed 78% to Rs17.77 billion compared to Rs9.99 billion in the `corresponding period of previous fiscal year.

Earnings per share came in at Rs20.19 for Jul-Mar FY20 compared to Rs11.35 in the same period of last year. 

Published in The Express Tribune, April 23rd, 2020.

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