Vidullanka posts highest-ever after-tax profit of Rs. 601 m in FY21

Dividend distribution amounts to Rs. 106 m with 10 cents interim and 12.5 second interim

Vidullanka PLC has announced its highest recorded profit after taxes of Rs. 601 million for the financial year ended on 31 March 2021 and a comprehensive income of Rs. 687.5 million.

The figures are annual increments of 66% and 53% respectively in comparison to the previous financial year. As with the previous quarters of this financial year, the company has performed in a resolute manner with the raging pandemic.

As per the segmental performance review, following the addition of Bukinda SHPP to company’s portfolio overseas, hydro power generation revenue has increased from Rs. 593 million to Rs. 798 million for the financial year ended 2020/21 and the overseas segment contributed Rs. 379 million to the group bottom-line, an increase of 27% over the previous period.

The company distributed an interim dividend of 10 cents per share amounting a total distribution of a sum of Rs. 84 million to the shareholders during the quarter and more recently concluded a distribution of another interim dividend of 12.5 cents per share amounting a total distribution of Rs. 106 million.

The shareholders of Vidullanka PLC approved the rights issue of non-voting shares raising Rs. 250 million at the extraordinary general meeting held on 5 May. The trading of the rights concluded on 28 May and the latest date of payment has been extended till 4 June due to travel restrictions in place in wake of the third wave of the COVID-19 pandemic.

The issue of non-voting shares will introduce a new category of shares of Vidullanka PLC, in addition to the ordinary shares listed since 2005 and is priced at a per share consideration of Rs. 3.50.

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.

Vidullanka PLC recently formed a joint venture with Windforce Ltd., and HiEnergy Services Ltd., in April to jointly develop a 10MW Solar power plant in Vavunathivu at a total capital investment of Rs. 1.4 billion.

Further Vidullanka acquired Orik Corporation Ltd., a company with approvals to develop a 1MW ground mounted solar power plant in Monaragala.

Whilst the acquisition allowed Vidullanka PLC to secure majority shareholding in the company, Vidullanka is set to hold 87% ownership in the company in return of the investment in development of the said solar power plant and the balance 13% to be held by the initial shareholder. The company also has several of rooftop solar power plants operational as well as under construction. Further, the company recently secured the rights to develop a 2MW ground mounted Solar power plant in Horana, through a competitive bidding process. 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. The company is successful in diversifying both technology-wise as well as geographically and is well positioned to take up the emerging opportunities amidst the turbulent business environment prevalent due to the pandemic.