Vidullanka PLC ups FY23 net profit by 5% to Rs. 913 m

Vidullanka PLC – Bambarabatuoya Mini Hydro Power Plant

Vidullanka PLC has reported a Profit After Tax of Rs. 913 million for the year ended 31/03/2023 up by 5% from the previous year.

The total revenue of the company for this period was reported to be Rs. 3.83 billion, a 49% increase in contrast to the last year’s figures of Rs. 2.56 billion. The dwindling growth of profits, despite the healthy increase in revenue, can be attributed to the massive increase in Cost of Sales and Finance Costs borne by the company.

The Overseas Hydro segment continues to be the standout performer of the group, with its recorded profit of Rs. 1.22 billion, being over twice the amount of profit generated overseas in the previous year. The overseas presence mainly comprising Muvumbe SHPP and Bukinda MHPP generated a revenue of Rs. 2.56 billion, an 84% increase compared to the revenue generated in the preceding year. The Local Hydro segment experienced growth curtailments of 35% and 56% in the Rs. 588 million revenue generated and Rs. 328 million profits made respectively, when compared to the figures of the year before.

The Biomass and Plantation Segment was successfully able to turn around its misfortunes by reporting a profit of Rs. 66 million for the year, which is an incredible U turn from the losses of Rs. 76 million the segment faced last year. This feat is a very commendable achievement by the segment taking into account the rising prices and shrinking supply of fuelwood and other cost implications.

The group has been recently concentrating its efforts and resources on the Solar Power segment with an aim to further diversify its plant portfolio. The Solar unit of the company suffered losses of Rs. 16 million, after reporting a profit of Rs. 19 million for the previous year.  

During this period, Vidullanka PLC was able to successfully commission its 10MW ground mounted solar power plant in Vavunathivu in October 2022. The project is a Joint Venture between Vidullanka PLC, Hi Energy Services and Windforce PLC and will add 17.9GWh in annual energy generated to the national grid. Another ground mounted solar project, the 2 MW Horana Solar Power project is nearing completion and commissioning.

Vidullanka PLC also set foot in new continental waters in Guyana, South America, by being awarded an Engineering, Procurement and Construction Contract by the Guyana Energy Agency to design and build two hydro power plants with a cumulative capacity of 2.2MW. The initial works of the contract are now well underway and project closure is expected in around 18 months. The company was also able to secure an Operations and Maintenance consultancy assignment in Rwanda, for Rwanda Mountain Tea, which owns and operates five Hydro power plants.

The company also shined at the Presidential Environmental Awards 2021/2022 held in April 2023, as it was awarded the prestigious Gold Award for its Wembiyagoda MHPP, being the first company under the Renewable Energy Sector to win the award for its contribution to environmental conservation. The plant was recognised with this award due to its continuous efforts of protecting catchment areas and river basins, reforestation initiatives, watershed management and river waste management practices.

Along with the financials published, the company has declared the first interim dividend of the current financial year of 11 cents per share. The interim financial statements also disclosed that during the year ended 31/03/2023, the company paid dividends of 20 cents per share amounting to a total distribution of Rs. 189 million.

Vidullanka PLC, a prominent player in the Sri Lankan renewable energy space, continues its unwavering growth, locally and internationally, even amidst the macroeconomic challenges in Sri Lanka. In its statement Vidullanka said the future still looks bright for the company and the industry as the prevailing energy difficulties faced by the country and also the world emphasise the importance of the inevitable need for clean and sustainable energy throughout the globe.