Nishat Group’s Lalpir Power and Pakgen Power Report Huge Increase in Profits

Lalpir Power Limited and Pakgen Power, projects of the Nishat group of companies, have announced their financial results for the half-year that ended on June 30, 2020.

Lalpir Power Limited

The company reported a profit of Rs. 1.83 billion during the half-year, showing a growth of 74.30% in profits on the back of lower cost of sales, according to a bourse filing. It had reported a profit of Rs. 1.05 billion in the same period last year.

However, the sales of the company went down by 31% to Rs. 4.85 billion this year as compared to Rs. 7.02 billion. On the flip side, the cost of sales was down by 60% from Rs. 5.16 billion to Rs. 2.07 billion. This took the gross profits to Rs. 2.78 billion as compared to Rs. 1.85 billion.

A.A.H Soomro, managing director at Khadim Ali Shah Bukhari Securities told ProPakistani,

These companies do better when their utilisation is low owing to plant inefficiencies. In a bigger picture, in power sectors, all bets are up for revision

Finance cost saw an increase of 12.70% to Rs. 844 million as compared to Rs. 749 million. It is pertinent to mention that no income tax was paid during this year as well.

The company’s earnings per share increased to Rs. 4.83 from Rs. 2.77.

LPL’s share at the bourse was closed at Rs. 13.73, down by Rs. 0.21 or 1.51%, with a turnover of 8.23 million shares on Tuesday.

Pakgen Power

Pakgen Power Limited, which is another project of the Nishat group of companies, posted a profit of Rs. 2.25 billion in the half-year ended June 30, 2020, up by 70.40% as compared to Rs. 1.32 billion in the same period last year.

However, the revenue of the company fell by 26% to Rs. 4.99 billion from Rs. 6.73 billion. On the flip side, the decline in the cost of sales by 58% helped increase the gross profits by almost 51%. The cost of sales decreased by 58.2% to Rs. 1.97 billion from Rs. 4.73 billion last year.

Gross profits were posted at Rs. 3.01 billion as compared to Rs. 2.00 billion.

There was a 21% increase in administrative expenses, which reached Rs. 114 million, coupled with a decline in other income by 50% to just 38.29 million.

There was a minimal change of 4% in finance cost as it was posted at Rs. 683 million as compared to Rs. 657 million. However, no income tax was paid during the period.

Earnings per share increased to Rs. 6.06 as compared to Rs. 3.56.

PKGP’s shares at the bourse were closed at Rs. 18.49, up by Rs. 0.77 or 4.35%, with a turnover of 0.74 million shares on Tuesday.



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