The company’s cost of sales was also 20% higher than the preceding quarter. PHOTO: FILE
The Kot Addu Power Company (Kapco) has announced its earnings results for the third quarter of fiscal 2013 (3QFY13) today, posting earnings of Rs1.97 billion for the period (27% higher than last year) to take nine-month earnings for the fiscal year to Rs5.66 billion (33% higher than the preceding year). The company has however decided not to give a dividend to shareholders.
On a quarterly basis, Global Securities, in an analyst note, pointed out that Kapco’s topline increased by 18% due to higher capacity utilisation of 42% in 3QFY13, against a lower 34% in 2QFY13. The benefits of a lower tax rate (30% in FY12) due to balancing, modernisation and replacement (BMR) initiatives, however, seem to have subsided, with a 35% tax rate realised in 3QFY13, adds the note. BMR accounted for 10% tax credit extended to the company, which started in fiscal 2012. The company’s cost of sales was also 20% higher than the preceding quarter. Accounting for all these factors, net income for the quarter exceeded the preceding quarter by only 2%.
Published in The Express Tribune, April 24th, 2013.
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