Vidullanka reports Rs.913mn PAT for FY 2022/23

Vidullanka PLC reported a profit after tax (PAT) of Rs.913 million for the financial year ended on March 31, 2023, as per the latest interim financials published in the Colombo Stock Exchange. 

The year-on-year change in profits turned out to be a 5 percent increment, compared to the previous year’s profit of Rs.865 million. The total revenue of the company for this period was reported to be Rs.3.83 billion, a staggering 49 percent increase in contrast to last year’s figure of Rs.2.56 billion. The dwindling growth of profits, despite the healthy increase in revenue, can be attributed to the massive increase in cost of sales and finance costs borne by 
the company.

The overseas hydro segment continues to be the standout performer of the group, with its recorded profit of Rs.1.22 billion, being over twice the amount of profit generated overseas in the previous year. The overseas presence, mainly comprising of Muvumbe SHPP and Bukinda MHPP, generated a revenue of Rs.2.56 billion, an 84 percent increase compared to the revenue generated in the preceding year. The local hydro segment experienced growth curtailments of 35 percent and 56 percent in the Rs.588 million revenue generated and Rs.328 million profits made, respectively, when compared to the figures of the year before. 

The biomass and plantation segment was successfully able to turnaround its misfortunes by reporting a profit of Rs.66 million for the year, which is an incredible U-turn from the losses of Rs.76 million the segment faced last year. This feat is a very commendable achievement by the segment, taking into account the rising prices and shrinking supply of fuelwood and other cost implications.

The group has been recently concentrating its efforts and resources on the solar power segment, with an aim to further diversify its plant portfolio. The solar unit of the company suffered losses in the amount of Rs.16 million, after reporting a profit of Rs.19 million for the previous year.  During this period, Vidullanka PLC was able to successfully commission its 10MW ground-mounted solar power plant in Vavunathivu in October 2022. The project is a joint venture between Vidullanka PLC, Hi Energy Services and Windforce PLC and will add 17.9GWh in annual energy generated to the national grid. Another ground-mounted solar project, the 2 MW Horana Solar Power project, is nearing completion and commissioning.

Vidullanka PLC also set foot in new continental waters in Guyana, South America, by being awarded an engineering, procurement and construction contract by the Guyana Energy Agency to design and build two hydropower plants, with a cumulative capacity of 2.2MW. The initial work of the contract is now well underway and the project closure is expected in around 18 months’ time. The company was also able to secure an operations and maintenance consultancy assignment in Rwanda, for Rwanda Mountain Tea Ltd, which owns and operates five hydropower plants. 

Along with the financials published, the company has declared the first interim dividend of the current financial year of 11 cents per share. The interim financial statements also disclosed that during the year ended on 31/03/2023, the company paid dividends of Rs.0.20 per share, amounting to a total distribution of Rs.189 million. 

Vidullanka PLC, a prominent player in the Sri Lankan renewable energy space, continues its unwavering growth, locally and internationally, even amidst the macroeconomic challenges in Sri Lanka.