5 August 2019 10:19 am
Revealing its financial performance for the first three months of 2019/20 financial year, during the period ended June 30, 2019 (1Q20), the LVL Group reported a drop in revenue to Rs.51 million from Rs.114 million achieved during the corresponding period in the previous year.
The revenue decline is attributable to a dip in the income of its subsidiary company by Rs.62 million to Rs.34 million from Rs.96 million.
The subsidiary companies, which comprise Kadawala, Sapthakanya and Campion hydro power plants, faced a drop in energy generation during the period April to June 2019.
The combined power generation of the hydro power plants was 2,203 MWH representing a drop of 64 percent compared to 6,174 MWH during the same period in the previous year due to the extraordinary dry weather conditions that prevailed during the period.
Meanwhile, operating expenses dropped to Rs.31 million compared to Rs.34 million during the same period last year while operating profit stood at Rs. 20 million compared to Rs.81 million last year, owing to the decline in subsidiary company income.
However, share of profit from associate companies recorded an increase of Rs.7 million to Rs.192 million from Rs.185 million in the corresponding period last year.
The improvement was due to the higher contribution from wind power plants compared to the previous year.
The contribution from hydro power plants operated by associate companies was also less this year with a 55 percent decline in generation to 5,354 MWH during the period April to June 2019 from 12,010 MWH during the same period in 2018.
On the back of increased borrowings in May 2019 to fund the investment in the new thermal power plant being constructed in Feni, Bangladesh, the interest cost for the quarter increased to Rs.72 million from Rs.34 million in the corresponding quarter last year.
As a result, profit before tax for the period decreased to Rs.141 million compared to Rs.232 million in the same period last year.
The tax charge for the quarter also increased to Rs.30 million from Rs. 11 million for the same period last year due to the increase in withholding tax attributable to dividends received by the company.
Accordingly, profit for the period was Rs.110 million compared to Rs.221 million in the corresponding period last year.