Kot Addu Power Company Limited (PSX: KAPCO) saw a significant decline in profitability, with a nearly 60% year-over-year drop. They reported a net profit of Rs3.96 billion [EPS: Rs4.5] for the fiscal year ending on June 30, 2023, down from Rs9.89 billion [EPS: Rs11.24] in the previous year.
In addition to these results, the company also declared a final cash dividend of Rs5 per share, which is equivalent to 50% of the share’s value. This is in addition to the interim dividend of Rs3.5 per share, representing 35% of the share’s value, which had already been paid.
The company’s total revenue plummeted by a staggering 81.38% year-over-year, dropping to Rs25.44 billion, compared to Rs136.6 billion in the previous fiscal year (FY22).
Although the cost of sales decreased to Rs26 billion in FY23 from Rs128.07 billion in the same period last year, this reduction was insufficient to offset the substantial decline in sales. As a result, the company incurred a gross loss of Rs568.85 million, a sharp contrast to the Rs8.53 billion gross profit reported in FY22.
During the review period, other income increased by 25.56% year-over-year, reaching Rs15.84 billion in FY23, compared to Rs12.62 billion in the same period last year.
On the expense side, the company managed to reduce administrative expenses by 13.73% year-over-year. However, other expenses surged significantly by 4.9 times year-over-year, reaching Rs842.58 million and Rs1.36 billion, respectively, during the review period.
The company’s finance costs expanded by 42.99% year-over-year, reaching Rs6.25 billion, up from Rs4.37 billion in FY23, primarily due to higher interest rates.
In terms of taxes, the company paid a lower tax amounting to Rs2.86 billion, compared to the Rs5.63 billion paid during the same period the previous year, reflecting a YoY decrease of 49.19%.
| FY2023 | FY2022 | % Change | |
| Sales | 25,435,312 | 136,599,624 | -81% |
| Cost of sales | -26,004,159 | -128,067,519 | -80% |
| Gross Profit | -568,847 | 8,532,105 | – |
| Administrative expenses | -842,579 | -976,701 | -14% |
| Other Income | 15,843,925 | 12,618,768 | 26% |
| Other expenses | -1,360,293 | -277,451 | 390% |
| Finance cost | -6,252,898 | -4,373,107 | 43% |
| Profit before taxation | 6,819,308 | 15,523,614 | -56% |
| Taxation | -2,860,551 | -5,629,994 | -49% |
| Net profit for the period | 3,958,757 | 9,893,620 | -60% |
| Earnings Per Share | 4.5 | 11.24 |
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