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.
