Vidullanka wraps up 1Q with Rs. 232 m after tax profit

Wednesday, 16 August 2023 04:08 - - {{hitsCtrl.values.hits}}

Vidullanka PLC – Bambarabatuoya Mini Hydro Power Plant

Vidullanka PLC has recorded a net profit of Rs. 232 million for the quarter ended 30/06/2023, up by 6% from the first quarter of the year before, as per the latest interim financials on the Colombo Stock Exchange.

The total revenue of the Group surpassed just over Rs. 1 billion, a healthy jump compared to the Rs. 775 million recorded in the corresponding period of the previous year. Increases in costs of finance and cost of sales have curtailed the profitability growth of the company, as evident above.

The overseas hydro segment of the group boasted a revenue of Rs. 739 million which shelled out profits amounting to Rs. 407 million. The revenue and profit figures for the first three months ended in the previous year were Rs. 547 million and Rs. 253 million, respectively, which is evident of substantial growth in the segment. This segment mainly comprises of Muvumbe MHPP and Bukinda MHPP located in Uganda. The local hydro segment experienced growth curtailments of 38% in Revenue and 39% in profits compared to last year’s period as they both reached Rs. 114 million and Rs. 85 million respectively.

The biomass and plantation segment which recorded losses of Rs 41 million in the previous year was successful in netting a profit of Rs. 11 million in the period in concern. This is a very commendable feat owing to the negativities posed by a shrinking supply of fuelwood and other cost constraints. The group’s solar segment faced a loss of Rs. 17 million during the three months, a considerable downturn from the Rs. 2 million profit recorded during the previous period, which could be attributed to the exponential costs of financing.

The newly entered business segment, the EPC arm which includes the EPC contract undertaken for the Guyana Energy Agency to build two hydro power plants in Lethem, Guyana, recorded a loss of Rs. 34 million, which is expected to quickly turn around with the contract works being completed at a rapid pace.

During the three months ended 30 June 2023, the company was able to successfully commission a ground mounted solar power plant in Horana on 06 June 2023. This 2 MW plant is the third ground mounted solar power plant under the group’s portfolio which will add around 4.4 GWh of energy to the national grid. The company is also actively pursuing a number of projects in Africa and South Asia, building a healthy pipeline for growth.

During the period, the company paid an interim dividend of Rs. 0.11 per share, totalling to Rs. 103.8 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. 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.