Druk Holding and Investment (DHI) have announced its financial results for 2023, showcasing significant growth within the each sector. According to the DHI annual report, energy and resources sector tops the revenue generator for the group. In 2023, the energy and resources sector contributed a remarkable 50.40% to the total revenue, amounting to Nu 40,794.77 million (M), marking an 18% increase (Nu 6,096.90M) from Nu 34,697.86M in 2022.
State Mining Corporation Limited (SMCL) reported a total income of Nu 6,467.79M in 2023, reflecting a 20.55% increase over last year’s Nu 5,365.29M. Particularly, dolomite sales played a pivotal role, with the bottom-line Profit After Tax (PAT) rising by 19% to Nu 2,274.78M. The company reinvested Nu 1,241.55M back into the local community through various work contracts.
The Bhutan Power Corporation (BPC) achieved the highest revenue within the energy and resources sector at Nu 20,208.50M, a significant increase of 36.07%. It was mainly driven by a substantial rise in electricity sales. “Energy sold surged by 64.20% to 5,689.74 million units sold last year and the company reported a 38.07% increase in its bottom line.” The report shows that there is increase in the number of customers from 232,465 to 243,385 in the fiscal year 2023 due to surge in domestic load.
The Natural Resources Development Corporation Limited (NRDCL) also experienced a revenue growth of 18%, reaching Nu 170.82M, primarily due to increased timber and stone sales, with a PAT of Nu 16.26M, up by 44.46%.
Meanwhile, the Druk Green Power Corporation Limited (DGPCL) reported a 2.97% decrease in its revenue generation with its revenues falling to Nu 11,668.60M. “Despite an increase in domestic energy consumption, reduced energy generation impacted the bottom line, although the company still managed a net profit of Nu 2,524.09M.”
The Communication and Transportation sector contributed 13.50% to the group’s revenue, totaling Nu 10,931.80M. Bhutan Telecom Limited achieved revenues of Nu 6,098.76M, with mobile services accounting for 88.37% of its income. The company reported a PAT of Nu 2,431.57M, while Druk Air rebounded with a PAT of Nu 291.34M, recovering from a loss of Nu 1,146.24M in 2022.
The manufacturing sector contributed 7.30% of the total income to the group revenue. Menjong Sorig Pharmaceutical Corporation Limited (MSPCL) experienced a significant increase of 42.55% in sales revenue to Nu 107.867M, primarily driven by supply of 13.48MT of traditional medicines and products, and health supplements worth Nu 20.19M, resulting in a net profit of Nu 16.29M. Dungsam Cement Corporation Limited (DCPL) and Dungsam Polymer Limited (DPL) also reported improved performance, while Koufuku International Limited saw revenues rise to Nu 101.04M, achieving a PAT of Nu 1.77M.
Similarly, Penden Cement Authority Limited (PCAL) reported a significant income growth to Nu 1,652.03M and a net profit of Nu 102.94M. Bhutan Board Products Limited (BBPL) achieved revenue of Nu 232.62M, with a profit of Nu 22.5M. Meanwhile, Azista Bhutan Healthcare Limited (ABHL) reported a loss of Nu 46M due to increased operating expenses.
Under the financial sector, Bank of Bhutan Limited (BOBL) continued to lead in banking services with substantial growth in digital transactions. mBOB transactions saw an increase to Nu 67B and goBOB to Nu 482M respectively. Additionally, BOBit, foreign inward remittance services, facilitated remittance of AUD 48.01M. The Bank reported a PAT of Nu 1,002.49M against Nu.676.57M in 2022.
Under the real estate and construction, Thimphu Techpark Ltd (TTPL) achieved a revenue increase of 87% to Nu 294.40M, with a net profit of Nu 130.97M mainly driven by the ePIS project.
On the other hand, Construction Development Corporation Limited (CDCL) completed HRT excavation and concrete lining of the Nikachhu hydropower project during 2023. It saw a revenue growth of 15% but profits reduced by Nu 3,21M due to substantial increase in the project costs.
Under the trading sector, State Trading Corporation Bhutan Limited (STCBL) expanded its fuel retail network to additional three Dzongkhags achieving revenue of Nu 3,443.46M and a PAT of Nu 12.70M.
Meanwhile, in a move towards future-focused investment, the DHI has incorporated the crawfish Himalayan Limited, an Agri-tech company to cultivate crawfish for both export and domestic markets.
Additionally, DHI has entered into a partnership with Avantwood, a Finnish company, to establish a Thermo Mechanical Timber Modification (TMTM) unit in Bhutan. This venture will facilitate the manufacturing of high-value-added engineered wood products in the country.
A Memorandum of Understanding (MoU) was signed with FFI, an Australian based multinational company to explore investment into production of Green Hydrogen in Bhutan.
As part of its private sector development mandate, DHI has disbursed a total of Nu 33.23M to support 85 entrepreneurs.
DHI is also looking into the maintenance of power distribution lines using drones. These initiatives underscore DHI’s ongoing dedication to promoting innovation, sustainable growth, and economic development.
By Nidup Lhamo, Thimphu
