… profit before tax declines by 8.71 percent 

The Druk Holding and Investments (DHI) and the group’s revenue grew by 13.77 percent in 2022 compared to the previous year, according to its press release.

In absolute figures, it saw an increase to Nu 45.87 billion or USD 545.7 million from Nu 40.31 billion or USD 479.64 million. 

The DHI and the group announced that they saw a strong financial performance last year. 

“Strong revenue reflects 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,” it stated. 

With the group remitting Nu 15 billion (USD 178.57 million) as advance dividends, taxes, and royalties to the finance ministry last year, it saw an increase of 15.16 percent from last year. In 2021, the group remitted Nu 13.03 billion or USD 155.06 million to the ministry.

Additionally, the group also remitted Nu 3.36 billion or USD 39.99 million in June of this year as dividend payout, bringing the total remittances to Nu 18.37 billion or USD 218.56 million.

“DHI and the group is proud to have delivered strong revenue growth for fiscal year 2022, which indicates the health of our primary portfolio companies even amid challenging market conditions,” the DHI’s Chief Executive Officer, Ujjwal Deep Dahal said. 

He added that the DHI’s mandate is to better the lives of the Bhutanese people today and achieve a secure future for generations to follow. “DHI’s ability to grow the remittances to the finance ministry is pivotal to fuel continued investment in growth and prosperity for the people of Bhutan.”  

The press release stated that the income supports social services to Bhutanese people and the government’s capacity-building.

During the same year, the DHI and group’s expenditures rose by Nu 6.77 billion (USD 80.59 million), an increase of 25.76 percent to Nu 33.07 billion or USD 393.43 million.

According to the press release, the increase was mainly because of direct cost of sales on account of energy and wheeling charges, growth in materials used in infrastructure development and higher aircraft fuel, oil and operating costs.

The higher revenues and increased expenditures saw DHI and the group’s profit before tax declined by 8.71 percent to Nu 12.8 billion or USD 152.27 million.

Despite the decline in profit before tax, DHI and the group paid total tax on revenue of Nu 8 billion (USD 95.24 million) last year, an increase of 10.1 percent, the press release stated. This was on account of the higher dividend received from the DHI companies. 

The DHI also stated that the investment in next-generation technology ventures builds a promising pipeline for future returns despite the decline in the DHI companies’ profit before tax and profit after tax. 

“DHI remains committed to driving growth and contributing to Bhutan’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,” Ujjwal Deep Dahal said.