DHI sees 17% increase in income and profit for 2016

The Druk Holding and Investments (DHI) itself earned an income of Nu. 7,383.740 million in 2016, a 17 percent increase from the previous year according to its annual report.

A total of 97 percent of the income was dividend from its 20 subsidiaries in energy, manufacturing, trading, finance, communications and transportation sectors.

The major portion of dividends was from DGPC and BPC amounting to Nu.5104.360 million and Nu.1,281.650 million respectively.

According to the National Budget report for the Financial Year 2017-2018 DHI contributed Nu.6,248.470 million in taxes and dividends to the government which constituted 22% of the total domestic revenue.

Dividend remittances from DHI to the government increased by 5.32 % to Nu.4,067.540 million in 2016 which was mainly due to increase in profitability of DGPC, BPC and Bhutan Telecom which constitutes 95% of DHI’s dividend income.

Taxes paid by the company increased by 18% from Nu.1,855.800 million in 2015 to Nu. 2,180.930 million in 2016.

The company’s total expenditure in the year 2016 grew by about 6.65% which was attributed increase in the number of employees under the Young Professionals Leadership; expenses incurred on scholarship for long term studies of two full time employees under DHI Scholarship Program and annual salary increments.

The DHI annual report states that the company carried out new investments outside the group where the company carried prefeasibility studies (PFS) on pharmaceutical formulation unit, integrated agriculture facility, and PFS were also carried on Agarwood and Gypsum board.

The financing plan for Amochu Land Development and Township project was finalized and fund requirement assessment was completed.

At the company level, State Mining and Corporation Limited commenced operation of Habrang Coalmine and supplied coal to DCCL in the FY2016 and studies were also carried out related to Dzongthung Stone Quarry, Dumsidara Dolomite Mine, Urulludara Quartzite Mine and stone quarry for Chamkharchu Hydropower project.

In the hydropower sector, DGPC completed the DPRs of Druk Bindu and Kuri I hydropower projects and the phase I drilling works for Nyera Amari I and II projects have been completed.

In the Private sector development, DHI assisted Menjong Sorig Pharmaceutical in carrying out Research and Development activity on a herbal product and DHI has continued with DHI-Loden fund to help address issues pertaining to access to finance. DHI provided a total of Nu.20 million to be managed by Loden Foundation.

Speaking during the annual press conference yesterday CEO of DHI, Dasho Karma Yezer Raydi, said, “DHI’s success or achievement is the collective efforts of the people of Bhutan. The real shareholders are our people and we must rejoice in the continued growth of the company and the valuable guidance from the throne”.

The core mandate of the holding company is to strengthen Corporate Governance, enhance performance of its portfolio companies by regularizing a performance-driven and customer oriented culture of functioning, raise funds for investments, maximize return on investments and play a catalytic role in the development of the Bhutanese private sector.

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