WindForce declares first dividend of over Rs. 1 b after strong performance

• Group revenue up 30% to Rs. 4.5 b in FY21 
• Consolidated PAT up 10% to Rs. 2.07 b
• Announces first interim dividend of Rs. 0.75 per share for FY22

Newly-listed WindForce Ltd. has displayed a strong performance for the year 2020/21, prompting the Company to announce its first interim dividend of 75 cents for FY22 with a pay out of Rs. 1.03 billion. 

The move also means a return of 4.7% to shareholders. 

In FY21, consolidated revenue was Rs. 4.5 billion, up by 30% from FY20. Pre-tax profit grew by 5% to Rs. 2.48 billion and after-tax profit (PAT) improved by 10% to Rs. 2.07 billion. 

In the 4Q of FY21, revenue was up 10% to Rs. 880 million, whilst pre-tax profit was down by 5% to Rs. 368 million. Due to lower taxation, PAT rose by 265% to Rs. 103 million. Profit attributable to equity holders of the parent was Rs. 1.68 billion in FY21, up by 9%, whilst for the 4Q it was down 44% to Rs. 58.3 million.

The Company said performance in 2021 will receive a boost from the output to be added from a damaged transformer of CEB which affected the output of three of WindForce’s Wind power plants last year. This transformer is expected to be re-installed by end of June 2021 and will restore a significant energy output this year.

Additionally, the 50MW Gharo power plant in Pakistan (of which WIND holds a 30% stake) received a tariff increase from 6.7 PKR to 10 PKR, which was due in the last financial year. The delay was a result of approving the implementation of the tariff increase due to the impact of COVID in Pakistan. This will now be paid from this year onwards which will add a significant increase to revenue. 

Further, WindForce acquired a new 10 MW Solar plant in Vavunativu in May from Solar Universe, which is to be commissioned in February 2022. 

A share purchase agreement (SPA) was also signed to acquire a 500 ton per day (TPD) Waste to Energy plant from Fairway Holdings, which is expected to add 10MW to the National Grid in the near future. 

Investor confidence in WindForce climbed to a commendable high on the Colombo Bourse from its first trade onwards, as the share currently sits 18% higher than the IPO price. 

With its strong and stable track record, ICRA Lanka issued WindForce an issuer rating of (SL) AA- (stable), the highest rating bestowed on a corporate in Sri Lanka at the time of the issuance.