June 30, 2023
Future Energy Source Company Limited (FESCO) for the year ended March 31, 2023 reported a 107% increase in Revenue totaling $26.28 billion compared to $12.67 billion in the corresponding period last year. Revenue for the fourth quarter had a 32% increase to close at $6.14 billion compared to $4.66 billion for the comparable quarter of 2022.
The cost of goods sold amounted to $25.39 billion (2022: 12.28 billion), this represents an increase of 107% year over year. Consequently, gross profit increased by 128% to $887.82 million, compared to $389.35 million for the year ended March 31, 2022. The company booked a gross profit of $241.17 million for the fourth quarter, versus $145.22 million reported for the similar quarter of 2022.
Operating and administrative expenses increased by 129% to close at $307.29 million (2022: $133.94 million), while Impairment losses on financial assets increase by 668% from $2.32 million in 2022 to $17.86 million in the period under review.
Operating Profit for the year ended March 31, 2023, amounted to $566.40 million, a 122% increase relative to the $254.95 million reported in 2022. Operating Profit for the fourth quarter amounted to 135.30 million (2022: $98.45 million). Finance (cost) and income totaled $8.12 million, a 176% increase from the corresponding period last year. (2022: $2.94 million).
Profit Before Taxation for the year ended March 31, 2023, amounted to $574.51 million, a 123% increase relative to the $257.88 million reported in 2022. Profit Before Taxation for the fourth quarter amounted to 140.12 million (2022: $87.09 million).
Taxation for the year ended March 31, 2023, had a 23% increase to reach $3.25 million (2022: $4.24 million). Net profit for the year-end amounted to $571.27 million, a 125% increase from the $253.64 million reported in 2022. For the fourth quarter, Net profit was $136.87 million (2022: $87.09 million).
Consequently, Earnings Per Share for the year-end amounted to $0.23 (2022: EPS: $0.10), while Earnings Per Share for the quarter totaled $0.05 (2022: EPS: $0.03). The twelve-month trailing EPS was $0.23, and the number of shares used in these calculations was 2,500,000,000. Notably, FESCO’s stock closed the trading period on June 29, 2023, at a price of $3.68 with a corresponding P/E ratio of 16.10x.
Balance Sheet Highlights
FESCO, as at March 31, 2023, recorded ‘Total Assets’ of $3.83 billion (2022: $2.79 billion), a 37% increase year over year. The increase was attributed mainly to increases of $1.61 billion for ‘Property, Plant and Equipment’ which closed at $2.75 billion (2022: $1.14 billion).
Shareholders’ equity totaled $1.30 billion (2022: $770.59 million), representing a book value per share of $0.52 (2022: $0.31).
Disclaimer
Analyst Certification –The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.
Company Disclosure –The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.