Vidullanka records Rs.212mn profit in 1Q

Renewable energy player Vidullanka PLC has recorded earnings of Rs.211.8 million for the quarter ended on June 30, 2023 (1Q24), up marginally by one percent year-on-year, the latest interim financials of the company filed with the Colombo Stock Exchange showed.
The earnings per share for the quarter under review was 22 cents, against 23 cents a year ago.
The total revenue of the group surpassed just over Rs.1 billion, a healthy jump compared to Rs.775 million recorded in the corresponding period of the previous year. Increases in cost of finance and cost of sales curtailed the profitability growth of the company.
Cost of sales rose 67 percent year-on-year (YoY) to Rs.306.9 million while the company’s finance cost increased 18 percent YoY to Rs.131.9 million. Administrative costs also rose 47 percent YoY to Rs.155.4 million.

The overseas hydro segment of the group recorded a revenue of Rs.739 million, which shelled out profits amounting to Rs.407 million. The revenue and profit figures for the first three months ended in the previous year were Rs.547 million and Rs.253 million. 
This segment mainly comprises of Muvumbe MHPP and Bukinda MHPP located in Uganda. 
The local hydro segment experienced growth curtailments of 38 percent in revenue and 39 percent in profits compared to last year’s period, as they both reached Rs.114 million and Rs.85 million, respectively. 

The group’s biomass and plantation segment, which recorded losses of Rs.41 million in the previous year, was successful in netting a profit of Rs.11 million in the period in concern. This was a commendable feat, owing to the negativities posed by a shrinking supply of fuelwood and other cost constraints. 
The group’s solar segment incurred a loss of Rs.17 million during the three months, a considerable downturn from the Rs.2 million profit recorded during the previous period, which could be attributed to the exponential cost of financing.

The newly entered business segment, the EPC arm, which includes the EPC contract undertaken for the Guyana Energy Agency to build two hydropower plants in Lethem, Guyana, recorded a loss of Rs.34 million, which is expected to quickly turn around with the contract works being completed at a rapid pace. 
During the three months ended on June 30, 2023, the company was able to successfully commission a ground-mounted solar power plant in Horana on June 6, 2023. This two MW plant is the third ground-mounted solar power plant under the group’s portfolio, which will add around 4.4 GWh of energy to the national grid. The company is also actively pursuing a number of projects in Africa and South Asia, building a healthy pipeline for growth.
During the period, the company paid an interim dividend of Rs.0.11 per share, totalling to Rs.103.8 million.