Kohinoor Power Company Limited (KPCL) held its Board of Directors meeting today at its office located on Ferozepur Road, Lahore. The Board released its audited financial results for the fiscal year ending June 30, 2024. The following key points were highlighted:
Dividend and Bonus Shares Declaration:
- Cash Dividend: NIL
- Bonus Shares: NIL
This indicates that the company has chosen not to issue dividends or bonus shares for the fiscal year, likely in response to its financial performance and market conditions.
Price-Sensitive Information:
KPCL’s board also disclosed critical developments regarding its merger plans with Saritow Spinning Mills Limited (SSML). After extensive review, the board decided to retract its previous approval for the proposed amalgamation of KPCL into SSML, citing unfavorable economic conditions and the financial status of SSML, which ceased production in February 2024. The board acknowledged that the anticipated benefits of the merger were no longer achievable and assured stakeholders that they would continue to evaluate strategic options.
Financial Performance Overview (June 30, 2024)
The Statement of Profit or Loss reveals the following financial insights for KPCL:
Income:
- Rental Income (2024): PKR 11,118,458
- Rental Income (2023): PKR 17,552,496
Rental income showed a significant decline compared to the previous year, contributing to overall challenges faced by the company in maintaining profitability.
Gross Profit:
- Gross Profit (2024): PKR 3,271,433
- Gross Profit (2023): PKR 2,241,209
Despite reduced rental income, the gross profit increased year-over-year, which may reflect a reduction in direct costs.
Expenses:
- Administrative Expenses (2024): PKR 3,038,494
- Administrative Expenses (2023): PKR 4,724,468
- Other Expenses (2024): PKR 17,418,617
- Other Expenses (2023): PKR 543,753
The company experienced a drastic rise in other expenses, which climbed from PKR 543,753 in 2023 to PKR 17,418,617 in 2024, adding to its operational challenges. Administrative expenses decreased, but the sharp rise in other expenses outweighed this positive trend.
Losses:
- Operating Loss (2024): PKR 15,627,805
- Operating Loss (2023): PKR 1,872,880
- Loss After Taxation (2024): PKR 15,728,146
- Loss After Taxation (2023): PKR 1,699,997
KPCL’s operating loss ballooned in 2024, increasing nearly eightfold compared to the previous fiscal year. This larger operating loss, coupled with reduced income and increased other expenses, led to a substantial net loss for the company.
Loss Per Share:
- Loss per Share (2024): PKR (1.25)
- Loss per Share (2023): PKR (0.13)
The loss per share also worsened, reflecting the deteriorating financial performance of the company during the fiscal year.