The market observers expect the Kot Addu Power Company Limited (KAPCO) to post profit after tax (PAT) of Rs 6.1bn, translating into EPS of Rs6.95 in FY12, showcasing a decline of 6% YoY. Similarly, in 4QFY12 the company is expected to post a profit of Rs1.76bn (EPS Rs2.0) up by nominal 6%QoQ as compared to the previous quarter, said the analysts at InvestCap Research. They aid despite 10%QoQ increase in power generation, 30%QoQ leap in the financial charges kept the profitability of the company under check during 4QFY12. “We expect company to announce final cash dividend of Rs2.75/share as well, taking the total payout for the year to Rs6.50/share,” viewed Abdul Azeem, an analyst at InvestCap. The company’s financial charges are expected to bump up by 23%YoY to Rs10.7bn during FY12, as the company’s receivables from WAPDA are forcing the company to rely heavily on borrowing from the financial institutions.
KAPCO may see its FY12 profits down by 6pc
