Vidullanka reports Rs. 870 m PAT in FY22

• Comprehensive income tops Rs. 2 b 

Vidullanka PLC has recorded a Profit After Tax of Rs. 870 million and a Comprehensive Income of Rs. 2 billion for the twelve months ended 31 March 2022 from an all-time high revenue of Rs. 2,567 million as per the interim financial statements published in the Colombo Stock Exchange. 

The profit for the 12 months increased by a healthy 46% while the revenue growth also followed closely with a 43% jump. Vidullanka said it continues to grow exponentially against the grain, even in these unprecedented times in Sri Lanka. 

The overseas hydro segment continues to be the star performer of the group as the profit generated by Muvumbe SHPP and Bukinda SHPP in Uganda has risen by around 74% to Rs. 673 million compared to the previous year’s profit of Rs. 386 million. 

The overseas revenue for the respective period also increased by around 74% from Rs. 799 million to Rs. 1,392 million. The overseas asset’s position of the company has resulted in the translation gains amounting to Rs. 1,22 million helping to further strengthen the financial position of the group. 

The local hydro segment is the second most valuable contributor to the group profits with a Rs. 277 million contribution from a total revenue of Rs. 917 million during the year. The group posted an Earnings Per Share of Rs. 0.93 per share for the year in concern, a 37% increase from the previous year’s Earnings Per Share. The Net Asset Value Per Share too has significantly increased up to Rs. 6.05 per share from last year’s Rs. 4.21 value, as a result of the translation gains the company’s overseas assets have seen during the year.

The Biomass and Plantation arm of Vidullanka, which commenced operations in 2019, has recorded a net loss of Rs. 77 million for the year ended 31 March 2022. This loss can be attributable to the foreign exchange loss arising from the unprecedented and rapid depreciation of the rupee. The rise in fuel prices and other cost implications experienced over the year also negatively affected the company and the Dendro Power industry as a whole. 

The group has been recently concentrating its efforts and resources on the Solar Power segment with an aim to further diversify its plant portfolio. In its first year of operations, the ground-mounted solar projects in Sri Lanka have been able to contribute Rs. 6 million to the annual profits of the company. 

The group actively engages in its growth prospects with several projects currently upcoming in the pipeline, of which the most notable is the Bwengu, 50MWac Ground-Mounted Solar Power Project in Malawi which is being developed by Quantel Renewable Energy, a joint venture between Vidul group and Frontier Energy, Denmark. The construction of this project is expected to commence in Q4 of 2022 and end in Q1 of 2024. 

Locally, the group is engaged with the construction activities of Horana Solar (2MW) and Vavunathivu Solar (10MW) ground-mounted power plants as well. The company also noted regarding the cost escalations and the actions taken to overcome the challenges.

The interim financial statements also disclosed that during the financial year, the company paid a dividend of 30 cents per share during the year amounting to a total distribution of Rs. 267 million. 

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