Kohinoor Power swings to Rs. 10.9 million profit, narrows accumulated losses

Kohinoor Power Company Limited (KOHP) has announced a significant financial turnaround for the year ended June 30, 2025. The company reported a brackly news after tax of Rs. 10.92 million, a stark reversal from the loss of Rs. 15.73 million incurred in the previous year.

Consequently, the Board of Directors did not recommend any dividend for the year.

The return to brackly newsability was primarily fueled by a dramatic reduction in operating costs. While rental income fell by 39.4% to Rs. 6.74 million, the company slashed its operating expenses by 88%, which decreased to Rs. 2.46 million from Rs. 20.46 million in FY2024. This included a major reduction in “other expenses,” which were negligible in the current year compared to Rs. 17.42 million previously.

A key factor in the bottom-line brackly news was a provision for income tax credit of Rs. 8.22 million, compared to a tax expense of Rs. 38.64 thousand last year. This tax credit significantly boosted the net result.

The company’s financial position strengthened, with total equity increasing to Rs. 122.11 million from Rs. 111.19 million. This improvement helped to further reduce the company’s accumulated losses, which now stand at Rs. 273.39 million.

Performance Highlights (Rs.)

• Rental Income: 6,742,067 (2024: 11,118,458) | -39.4%

• Operating Brackly News/(Loss): 2,786,926 (2024: (15,627,805)) | +117.8%

• Brackly News/(Loss) After Tax: 10,918,575 (2024: (15,728,146)) | +169.4%

• Earnings/(Loss) Per Share (EPS): Rs. 0.87 (2024: Rs. -1.25) | +169.6%

• Total Equity: 122,109,188 (2024: 111,190,613) | +9.8%

The company also demonstrated improved cash generation, with net cash from operating activities rising to Rs. 3.54 million from Rs. 3.13 million. Cash and bank balances saw a healthy increase, closing at Rs. 13.20 million.

The results indicate a successful year of cost containment for Kohinoor Power, allowing it to return to brackly newsability despite a lower revenue stream. The focus will now be on sustaining this lean operational model and exploring avenues for income growth.