Investor Presentaiton
Investor Presentation
March 2020
FINANCIAL HIGHLIGHTS
COMPANY PROFILE
INDUSTRY AND MARKET
Management
commentary
09/34
Section:
FY20 Highlights
KPI Global
Infrastructure Ltd
.
The Financial year 2019-20 has been an
extremely exciting one for the company
with its core businesses adding momentum.
KPIGIL seen a gradual and steady increase
of revenue contribution from its key
segment-Solar Power sale business. When
the industry saw slowdown in installation
growth leading to lowest growth in solar
power generation in past six years, our
company registered substantial increase in
generation due to addition of 25 MW to our
existing portfolio of solar power plant in the
3rd quarter of the FY 2019-20. Our capacity
increased by 2.6 times from 15 MW to
40 MW leading to 150% growth in our power
generation revenue, which was major
contributor to our overall YoY revenue
growth of 72 %. The contribution of power
sale segment provides the strong stability
to our overall revenue this year and is
expected to continue in future.
Our solar power plant sale segment also
showed substantial growth of 52% YoY
registering highest sales in the segment
since the advent of this segment. Though
we expected further increase in this
segment, but due to overall pandemic
situation in the couple of months of last
quarter the momentum of our growth
slowed marginally, which is expected to
cover up in the coming quarters of next
financial year.
As stated in our HY key highlights, the
company has cautiously taken steps toward
reduction in sale of Industrial plot business
segment and shifts its focus more toward
sustainable segments (Power Sale & Power
plant sale). Thereby there was a decline of
5% in our plot sale segment.
The company registered remarkable
growth of 78% in the absolute operating
profits and thereby was able to marginally
improve its strong operating profitability
margin to 46%. In-spite of reduction in plot
sale business which was major contributor
in profitability in the past years, the
company was able to maintain its strong
profitability trajectory. The increase in
power sale segment, which has high profit
margins, not only compensated toward the
reduction in profits from plot sale segment,
but also provided long term sustainability to
our revenue and profits.
Net profit after tax of the company
decreased due to impact of deferred tax on
account of higher depreciation as per
Income Tax Act, but were able to record
healthy operating profit.
The company had wisely decided to opt for
tax regime under the new section (115BAA)
which was introduced through Taxation
ordinance 2019. Under this section.
company does not have to pay any tax this
year on account of heavy depreciation due
to substantial addition to fixed assets. The
long term vision to add capacity to its
owned power plant will help the company to
take the benefits of depreciation under this
section in coming years and is expected to
surpass the forgone MAT credit it had
earned in the past.View entire presentation