Vidullanka PLC recorded interim results with the Profit After taxes of Rs. 503 mn for the nine-months and a quarterly profit after tax of Rs. 304 mn, an increase of over 81% and 36% compared to the previous comparative periods.
The company has displayed a resilient performance for the first nine months of the financial year 2020/21, in face of challenges posed by Covid-19.
Following the addition of the company’s second hydro power plant in Uganda, Bukinda SHPP with an installed capacity of 6.5MW, the contribution to the Profits from the overseas hydro segment increased to Rs. 296mn in comparison to the Rs 165mn reported last financial year.
It is also noteworthy that the Dendro power segment returned to profitability and contributed to the group performance with a Profit After Tax of Rs. 10.2mn compared to the loss amounting to 34mn reported during the previous year. Vidul Biomass (Pvt) Ltd is a joint venture with Obayashi Corporation of Japan.
The company paid an interim dividend of Rs. 83.7mn to shareholders in January this year. The Vidullanka PLC intends to raise Rs.250.2mn equity share capital by way of a rights issue of Non-Voting shares subject to the approval from the Colombo Stock Exchange. The proposed issue of Non-Voting shares would be introducing a new class of shares in addition to the ordinary shares listed since 2005 and is priced at a per share consideration of Rs.3.50.
The proceeds of the rights issue of non-voting shares are intended to facilitate Vidullanka to solidify its position in solar power generation through investments in both rooftop solar and ground mounted solar power projects.
Solar Power has been earmarked as one of the fastest growing renewable energy segments with global scale adoption of the technology and scientific advancements helping to bring down the capital cost substantially over the past decade. Sri Lanka too has gradually incorporated solar power into its generation mix with private sector investments.
Vidullanka PLC, with a total installed capacity of 36.7MW has been strategically diversifying its investments in an array of renewable energy assets to optimise its returns to the shareholders.
Latest addition to its energy asset portfolio has been the rooftop solar power plant with an installed capacity of 515kWp at the factory premises of Diamond Cutters Limited, in the Panadura Industrial zone. The company also disclosed in the interim reports about the collaboration with Windforce (Pvt) ltd to develop a solar power plant in Senegal. The company has been successful in diversifying technology wise and geographically and is well positioned to take up the emerging opportunities amid the turbulent business environment prevalent due to the pandemic.