Kot Addu Power Company (Kapco) reported profit-after-tax of Rs2.41bn, representing earnings per share (eps) at Rs2.74 for the first-quarter FY15. It reflected stellar growth of 40pc from Rs1.73bn or eps at Rs1.96 YoY.
Key result highlights were said to include increasing load factor, which led to overall increase in gross margins, the company’s gross margins. However, due to buildup of circular debt, the company during 1QFY15 relied heavily on borrowed funds to run its operations, which was evident by a 2.3 times YoY increase in finance cost to Rs1.87bn in 1QFY15 against Rs806m in the same period last year.
The analysts also noted that the company’s earnings showcased a splendid growth despite the company paying tax at 32pc in 1QFY15 compared to 26pc in 1QFY14.
