Sri Lankan renewable energy company Vidullanka Plc records Rs. 870 million PAT in FY22
Vidullanka PLC, which is company engaged in renewable energy generation based in Sri Lanka, has reportedly recorded a Profit After Tax (PAT) of Rs. 870 million and a Comprehensive Income of Rs. 2 billion for the 12 months ended 31 March 2022 from an all-time high revenue of Rs. 2,567 million. These facts were revealed in the interim financial statements published in the Colombo Stock Exchange (CSE).
According to the report, 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.
It has noted that the overseas hydro segment continues to be the main 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 has also increased by around 74% from Rs. 799 million to Rs. 1,392 million.
The report has further noted that 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 report has further stated that 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, it has stated.
The group has stated that it 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 has also noted the cost escalations and the actions taken to overcome the challenges.
The interim financial statement has further noted that the company had paid a dividend of 30 cents per share during the year amounting to a total distribution of Rs. 267 million.
The ongoing power crisis in Sri Lanka has opened up a host of business/investment opportunities in the country’s power industry, especially in the renewable energy sector. The government of Sri Lanka has also adopted a policy of increasing the country’s renewable energy generation to 70% of the country’s total power generation. The local companies engaged in the renewable energy sector have shown a growth momentum and recorded profits. This is indicative of the growing business potential in Sri Lanka’s renewable energy sector. Foreign businesses/investors could therefore confidently explore the growing business/investment opportunities in Sri Lanka’s power industry, especially in the renewable energy sector. They could also look at forming partnerships or joint ventures with local businesses to engage in the renewable energy generation.
|Article Code :||VBS/AT/09062022/Z_3|