Karachi, April 25, 2018 (PPI-OT): KAPCO: 3QFY18 Result Review
KAPCO reported its 3QFY18 profitability at PkR2.21bn (EPS: PkR2.51) vs. PkR2.59bn (EPS: PkR2.94)in 3QFY17. Earnings slipped 14.7%YoY due to squeezed gross margins at 14.7% vs. 17.2% last year as the company likely carried out repair and maintenance to prepare for peak load period. Also, other income clocked-in higher at PkR1.74bn with receivables-payables spread largely in company’s favour. Lastly, finance costs shot up by 46.9%YoY to PkR1.61bn with heightening short term borrowing amidst higher fuel prices and inched up interest rates.
Cumulatively, 9MFY18 profit is down by a slight 2.3%YoY to PkR6.60bn (EPS: PkR7.50) against PkR3.04bn (EPS: PkR7.68). Increase in gross profits to PkR9.82bn and surge in other income by 31%YoY to PkR4.65bn was largely nullified by interest on short term borrowings, which went up by 53.4%YoY to PkR4.7bn.