Vidullanka profits double for nine months ended in FY 2013/14

Monday, 24 February 2014 00:00 -     - {{hitsCtrl.values.hits}}

Vidullanka PLC’s group profit has doubled for the nine months ended for the FY 2013/14 in comparison to the nine month period of the last financial year. The profit after tax of Rs. 198 million is a staggering 138% increase from the last year. The Group revenue for the period topped Rs. 464.5 million, the company disclosed in the quarterly report filed to Colombo Stock Exchange. Earnings per share for the group for the quarter ended is 9 cents earned through the 25% increase in quarterly revenue. The earnings per share for the last 3 quarters is 41 cents which is twice the EPS reported for the last financial year. The Group’s energy sales increased by 95.7% and the revenue from construction from project management rose by 34%. RAM Ratings recently reaffirmed Vidullanka PLCs credit ratings to A- with stable long term outlook. During the period under review company invested Rs. 80.1 million in development of new projects in order to venture into more renewable power projects in Sri Lanka and Overseas. The group has tremendous opportunity to grow in the backdrop of domestic demand for power is expected to grow at about 7% per annum in the next few years in line with robust economic growth, primarily supported by developing infrastructure facilities. Vidullanka, as a renewable energy producer is well positioned to benefit from this economic condition. The Group financial statements indicate a promising future; especially with the commissioning of the 1.3 MW Wembiyagoda Mini Hydro Power Project (MHPP) to the national grid in March 2013 has made a significant boost in the profitability of the Group, along with the commissioning of the 2.5MW Madugeta MHPP in November. It is also seeking to complete the construction of the 4MW Lower Kothmale MHPP in 2014, which would further increase the bottom line of the Group financial statements in the upcoming financial year. More recently Vidullanka PLC has commenced the construction of Rideepana MHPP, a 1.75 MW mini hydro power plant, located in the Badulla district through the project company Rideepana Hydro Power (Pvt) Ltd, a fully owned subsidiary of Vidullanka PLC. The total project cost is estimated to be Rs. 440 million and it is expected add 6.0 GWh of environmental friendly electricity, upon commissioning the power plant. The company paid an interim dividend of 7.5 cents per share on 27 December 2013 following the successful operations in the financial year. The company’s shares closed at Rs. 3.50 as at 31 December 2013 at an annualised PE ratio of 6.4 times.