Windforce group records steady top-line of Rs. 4,393 mn and Gross Margin of 62% in FY21/22

WindForce PLC is recognized as the largest Independent Power Producer (IPP) of renewable energy in Sri Lanka has shown tremendous resilience amidst turbulent times maintaining stability in both top-line and gross profitability over financial years 2021 & 2022 and recorded a group revenue of Rs 4,393 million contributing to a 2% YoY growth, and a gross profitability of Rs 2,724 million reflecting a gross profit margin of 62%.

The top-line achievement in FY21/22 was amidst several operational disruptions such asa breakdown at the CEB’s Norochcholai Wind Collector Substation which was subsequently rectified in September 2021, as well as decreased operational capacity in WindForce’s Joule and Beta power plants due to blade damages caused by lightning. With repairs being made to the damaged turbine blades, the company expects to run at full capacity in the current financial year.

Further, as with most companies, key policy changes implemented by authorities such as the sudden floatation of the Sri Lankan Rupee in early March following a hard peg throughout, led to the company absorbing a significant exchange loss of Rs 296 million on foreign currency loans in a single quarter, i.e. Q4 of FY21/22.

However, it is important to note that all overseas project revenue is entirely foreign currency denominated, and all foreign currency debt is backed by foreign currency assets. In dollar terms, total FC assets stood at twice the total FC debt as of March 31, 2022, where FC assets are held at cost, and loans revalued quarterly.