The Bhutanese Leading the way.
A press release by the Druk Holding & Investments Ltd (DHI), the commercial arm of the Royal Government of Bhutan, announced strong financial performance for fiscal year 2022 (FY2022). Total Group revenue rose almost 13.77% year-on-year to Nu. 45,866.34 million (US$545.70 million) from Nu. 40,314.15 million (US$479.64 million) in FY2021. Strong revenue figures reflect significant return on investment and improved financial performance across all sectors in which the Group operates, including energy and resources, communication and transport, manufacturing, and trading.
During the same period, DHI demonstrated its commitment to contributing to the growth and development of the nation of Bhutan. The Group remitted a total of Nu. 15,008.60 million (US$178.57 million) as advance dividends, taxes, and royalties to the Ministry of Finance, marking an increase of 15.16% versus the previous fiscal year’s remittance of Nu. 13,032.86 million (US$155.06 million). The Group remitted an additional Nu. 3,361.00 million (US$39.99 million) in June 2023 to complete its FY2022 dividend payout, bringing total remittances to Nu. 18,369.60 million (US$218.56 million).
Ujjwal Deep Dahal, CEO of Druk Holding and Investments Ltd, commented, “DHI and the Group is proud to have delivered strong revenue growth for FY2022, which evidences the health of our primary portfolio companies even amid challenging market conditions. DHI’s mandate is to better the lives of the Bhutanese people today and achieve a secure future for generations to follow. With the support from the Board, Shareholders and all the Stakeholders, DHI’s ability to grow the remittances to the Ministry of Finance is pivotal to fuel continued investment in growth and prosperity for the people of Bhutan.”
Total expenditures rose by Nu. 6,773.52 million (US$80.59 million; +25.76% year-on-year) to reach Nu. 33,068.30 million (US$393.43 million) for FY2022. This is mainly due to an increase of direct cost of sales on account of growth in energy and wheeling charges, growth in materials used in infrastructure development and higher aircraft fuel, oil and operating costs.
The net result of higher revenues and increased expenditures was a 8.71% year-on-year decline in Profit Before Tax (PBT) to Nu. 12,798.04 million (US$152.27 million).
Despite the decline in PBT, DHI Group paid total tax on revenue of Nu. 8,004.59 million (US$95.24 million) for FY2022 on account of higher dividend received from DHI companies, representing a 10.10 % year-on-year increase.
According to Dahal, “Druk Holding & Investments Ltd remains committed to driving growth and contributing to the Kingdom’s development and progress. The Group will continue to invest in future-focused sectors such as energy, resources, mines and minerals, digital assets, efficient transportation, manufacturing, and trading to ensure sustainable development and long-term prosperity.”
