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Powering ahead: Panasian Power acquires Manalwela Hydro Power Ltd - Expands power industry solutions portfolio
Sep 06, 201001:49 PM
Panasian Power Pvt Limited (PAP) acquired Manelwala Hydropower, expanding its power generation portfolio and strengthening the company’s capacity to deliver green energy solutions to the Sri Lankan market. The acquisition is part of the company’s drive to increase its stake in the renewable energy market in a commercially-focused, sustainable manner.
A fully owned subsidiary of Power Hub International, Malaysia, Panasian Power’s acquisition of Manelwala Hydropower (MHP) expands its commercial portfolio to 4.4MW. MHP, located at Walapane, in the Nuwara Eliya district has a plant factor of 40%. MHP increased its top line growth by 105 % over the 09/10 financial period, in addition to boosting profitability by 144% Return on Equity and Return on Assets recorded 12.23% and 6% respectively. Panasian’s current hydropower plant located at Rathganga, in the Rathnapura district, has 2.0 MW capacity and a plant factor of 60%.
Dr. Ramanujam, Chairman, Panasian Power said, “The addition of the Manelwala Hydropower Plant will help boost the company’s performance, while delivering on the company’s vision and passion for providing the best renewable energy solutions to the Sri Lankan consumer. Panasian Power has enjoyed favourable top line growth due to higher volumes of power generation as a result of favorable weather patterns and increased efficiency in infrastructure maintenance.”
Panasian Power has displayed solid top line growth over the last five years, enjoying a 16.37 % annual compound revenue growth. The company’s operational profit and bottom line have grown significantly recording a net profit of over Rs. 78 million during the last financial year, a growth of 26.7% over the previous year.
The company is operating almost entirely debt free due to 100% reductions in its Term Loan obligations. As a result, finance cost reduced by 88% as against last financial year. The reduction in interest rates and operational efficiency further helped Panasian Power minimize operational expenses. These reductions positively impacted its bottom line which recorded an annual compound growth of 35.7%.
