KAPCO first quarter earnings up 40 percent

KapcoKot Addu Power Company (KAPCO) has released its first quarter (1QFY15) financial results posting profit after tax of Rs2,409 million (EPS: Rs2.74) as compared to Rs1,725 million (EPS: Rs1.96) posted for the corresponding period last year,  up 40%YoY. The plant operated at a 77% load factor during July and August as against an average load factor of 54% achieved during 1QFY14. As a result KAPCO’s gross profit was augmented by 51%YoY. Other income supplemented earnings to keep the bottom-line afloat, with a stark 151%YoY increase to Rs1,630 million. The key result highlight included: 1) Increase in load factor led to overall increase in gross margins, 2) due to buildup of circular debt the company during 1QFY15 relied heavily on borrowed funds to run its operations, which is evident from increase in financial cost to Rs1,874 million during the quarter under review as compared to Rs806 million during the corresponding quarter last year and 3) earnings showcased a stellar growth despite the Company paying tax at 32% in 1QFY15 in comparison to 26% in 1QFY14.

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