Vidullanka nets Rs. 614 m PAT in 1H

Wednesday, 15 November 2023 01:50 - - {{hitsCtrl.values.hits}}

Vidullanka PLC has recorded a profit after tax of Rs. 614 million from a revenue of Rs. 2.9 billion midway through the Financial Year 2023/24, as per the latest interim financials for the six months ended 30 September published on the Colombo Stock Exchange.

The net profit and revenue for the period is up by a healthy 31% and 63% respectively, compared to the corresponding period of the previous year. The increase in revenues and costs can be attributed to the Hydro EPC contract the company undertook in Guyana, South America during the year. These impressive figures allude to the perseverance and resilience of Vidullanka PLC and its delivery of value to its stakeholders.

The Overseas Hydro segment of the group continues to be the standout business unit in terms of performance, contributing Rs. 740 million in profit after tax from a revenue of

Rs 1.2 billion, an increase compared to the profit of Rs. 531 million and revenue of Rs. 1.1 billion recorded during the same period in the previous year. The newfound business venture of Vidullanka, the EPC segment has hit the ground running with its USD 12.85 million EPC contract to construct two hydro power plants for the Guyana Energy Agency in South America. This segment has now generated over Rs. 1.1 billion in revenue, of which a Rs. 100 million profit contribution has arisen. The remaining contract works of the two-year contract are well underway.

The Local Hydro segment was subject to a decrease in Revenue from Rs. 325 million last year to Rs. 215 million this year during the identical period, which resulted in the profits also decreasing to Rs. 123 million from Rs. 191 million. The Biomass segment which recorded losses in the corresponding period of the previous year, has continued to enjoy its recent profitable run, recording a profit of Rs. 56 million from the Rs. 186 million in revenue recorded. The Engineering and Solar segment recorded losses of Rs. 3 million and Rs. 26 million for the period respectively.

During the period, the company successfully commissioned a 2MW ground mounted solar project in Horana on 6 June. This is the third ground-mounted solar project under the group’s portfolio, which adds 4.4 GWh of clean energy annually to the national grid. The group’s plant portfolio now stands at 21 projects, with a cumulative capacity of 51 MW. The company is also actively pursuing a number of projects in Sri Lanka, Africa and South Asia, building a healthy pipeline for growth.

The company also declared a 2nd interim dividend payout of 25 cents for the Financial Year 2023/24. which cumulatively represents a year-to-date payout ratio of 55% to its shareholders.

Vidullanka PLC, a pioneer in the renewable energy space is well geared to achieve a bright future in terms of profitability, capacity improvements and sustainable development. The global outcry to promote sustainability to better protect our finite resources and environment has brought about the need for clean and sustainable energy throughout the globe and Vidullanka said it is very well poised to capitalise on the opportunities this will bring about.