Tuesday, August 9, 2022

KAPCO earning registers growth of 166% in 2QFY19


Zain Zubair
Zain Zubair is a staff writer for World News Observer. He is studying ACCA in Pakistan. Besides Accountancy and writing pieces, he loves cooking and nature photography. Zain has attended various modern journalism workshops. Contact: [email protected]

Kot Addu Power Company (KAPCO) announced its 2QFY19 financial result where the company posted a profit after tax (PAT) of PKR 5,881mn (EPS: PKR 6.68), up by 166% YoY compared to PKR 2,214mn (EPS: PKR 2.52) during same period last year. The jump in earnings is mainly due to other income on account of tariff true-up during the period. This takes 1HFY19 earnings to PKR 8,996mn (EPS: PKR 10.22) compared to PKR 4,395mn (EPS: PKR 4.99).

Net sales witnessed an increase of 11% YoY to PKR 44,221mn, which is majorly owing to 39% YoY rise in furnace oil prices, however dispatches declined by 25% YoY to 2,616 GWh in 1HFY19. In 2QFY19, sales witnessed a decline of 32% YoY | 60% QoQ due to 65% YoY | 73% QoQ decline in dispatches (551 GWh).

Gross margins remained stable at 16% in 1HFY19, however up by 1,063bps YoY to 28% in 2QFY19. The rise in gross margins was witnessed due to PKR depreciation, we view.

Other income jumped by 248% YoY in 1HFY19 (361% YoY | 138% QoQ in 2QFY19) due to tariff true-up during the period mainly due to currency depreciation of more than 5% during the period under consideration.

Finance cost has increased by 43% YoY (55% YoY in 2QFY19) to PKR 4,400mn due to 16% YoY rise in PSO’s payables in 1HFY19 coupled with higher short term borrowings.

Surprisingly, the company skipped its dividend as overdue receivables of the company went up by 37% YoY to PKR 109bn (as of Sep’18).



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