Vidullanka reports Rs. 503 m PAT for 9 months

Monday, 15 February 2021 02:03 - - {{hitsCtrl.values.hits}}

Vidullanka PLC has announced a Profit After Tax of Rs. 503 million for the nine-month period and a quarterly Profit After Tax of Rs.304 million, reflecting an increase of over 81% and 36%, respectively, in comparison to the previous relative periods.

The company in a statement said it has displayed a resilient performance for the first nine months of the financial year 2020/21, in face of challenges posted by COVID-19.

Following the addition of the company’s second hydropower plant in Uganda, Bukinda SHPP with an installed capacity of 6.5MW, the contribution to the profits from the overseas hydro segment increased to Rs. 296 million in comparison to the Rs. 165 million reported last financial year.

It is also noteworthy that the Dendro power segment returned to profitability and contributed to the group performance with a Profit After Tax of Rs. 10.2 million compared to the loss amounting to Rs. 34 million reported during the previous year. Vidul Biomass Ltd. is a joint venture with Obayashi Corporation of Japan.

The company paid an interim dividend of a sum of Rs. 83.7 million to the shareholders during the month of January. Vidullanka PLC intends to raise Rs. 250.2 million equity share capital by way of a rights issue of Non-Voting shares, subject to the approval from the Colombo Stock Exchange.

The proposed issue of Non-Voting shares would be introducing a new class of shares in addition to the ordinary shares listed since 2005 and is priced at a per-share consideration of Rs. 3.50.

The proceeds of the rights issue of Non-Voting shares are intended to facilitate Vidullanka to solidify its position in solar power generation through investments in both rooftop solar and ground-mounted solar power projects.

Solar Power has been earmarked as one of the fastest-growing renewable energy segments with global scale adoption of the technology and scientific advancements helping to bring down the capital cost substantially over the past decade. Sri Lanka, too, has gradually incorporated solar power into its generation mix with private sector investments.

Vidullanka PLC, with a total installed capacity of 36.7MW, has been strategically diversifying its investments in an array of renewable energy assets to optimise its returns to the shareholders. The latest addition to its energy asset portfolio has been the rooftop solar power plant with an installed capacity of 515kWp at the factory premises of Diamond Cutters Ltd., in the Panadura Industrial Zone. The company also disclosed in the interim reports about the collaboration with Windforce Ltd., for the development in a solar power plant in Senegal.

The company has been successful in diversifying both technology-wise as well as geographically and is well-positioned to take up the emerging opportunities amidst the turbulent business environment prevalent due to the pandemic.