SMCL records 331.96 percent growth 

Thukten Zangpo  

Druk Holding and Investments (DHI) group declared a Profit After Tax (PAT) of Nu 6.7 billion (B) in 2021 an increase of 83 percent compared to the group’s PAT in 2020 of Nu 3.6B.

The group’s total revenue for the year was recorded at Nu 40.2B, an increase of 16.09 percent from the previous year’s Nu 34.7B.

The increase in the PAT was mainly because of increasing PAT from the energy and resource segment. The segment accounts for 75 percent of the total revenue generated by the group at Nu 30.2B in the year. It saw an increase of 17.3 percent in 2021 from Nu 25.8B in the previous year.

State Mining Corporation Limited’s (SMCL) PAT saw an increase of 331.96 percent at Nu 1.6B and registered a return on equity of 81.21 percent.

However, the Druk Green Power Corporations’ (DGPC) income for the year decreased by 5.91 percent to Nu 12.6B in 2021 from Nu 13.3B in 2020.

“The decrease in revenue was attributed to the decrease in power generation by 318.9 million units (MU), from 7,630MU in 2020 to 7,311.5MU in 2021. Also, increase in domestic energy consumption from 2,051.4MU in 2020 to 2,514MU in 2021,” the DHI stated.

The decline in the generation was also because of Tala hydropower plant shutting down in winter after DGPC confirmed voids, cracks, and debris in a certain section of the head race tunnel and surge shaft of the plant.

However, according to the DHI, the achievement is still outstanding given that power plant availability was at 94 percent for the year.

Bhutan Power Corporation Limited’s PAT of Nu 1.2B saw an increase of 102.28 percent from 2020.

In the communication and transport segment, Bhutan Telecom Limited recorded a PAT of Nu 1.98B. it saw a growth of 28.73 percent from 2020. According to the DHI, the company in 2021 deployed 192 new 4G sites and 16 new 2G sites in the country to ensure network reliability.

Among the DHI companies, Drukair Corporation Limited was the worst hit by the pandemic. The total flights operated during the year dropped by 43 percent to 850 flights from 1,487 flights in 2020. The number of passengers carried decreased by 65 percent to 23,858 from 67,482 passengers in 2020.

In the financial services segment, Bank of Bhutan Limited achieved a PAT of Nu 466.7 million (M). It saw an increase of 433.23 percent from Nu 87.5M in 2020.

According to the DHI, the bank’s digital initiatives eased banking services for its clients during the pandemic which triggered a remarkable increase in the transaction value by about 200 percent from Nu 122B in 2020. The bank maintained its non-performing loans at 3.34 percent.

However, manufacturing plants did not perform well. Besides bearing the increased cost of raw materials and freight charges, the plants had to operate in containment facilities, the DHI stated.

Dungsum Cement Corporation Limited saw a loss of Nu 267.7M in the year. Including the slow demand in the construction sector, DHI stated that the matter worsened with the emergence of positive Covid-19 cases from its containment area, which forced the company to stop cement export for more than a month.

Similarly, Dungsum Polymers Limited suffered a net loss of Nu 6.1M in the year.

However, Koufuku International Limited saw a revenue increase of 121.45 percent to Nu 56.3M from Nu 25.2M in 2020.

Under the information technology and construction segment, Thimphu Tech Park Limited achieved a PAT of Nu 100.4M, a 95 percent increase from 2020 mainly through software development. Its revenue also increased by 55 percent from Nu 158.8M in 2020.

Construction Development Corporation Limited (CDCL) was adversely impacted by the pandemic. However, according to the DHI, the CDCL initiated new strategic projects like the construction of HRT Adit 2 and river diversion works for the Kholongchhu hydroelectric project, Pangrizampa and Marungri bridge projects, and Jigmeling water supply project.