BSEC extends deadline for Power Grid’s FY24 financials again

The stock market regulator has extended the deadline for the second time for the Power Grid Company of Bangladesh – the country's sole state-owned power transmission firm – to publish its annual financials until 30 January. 

The company missed the deadline of 26 December, which was granted after its failure to publish financials within 120 days of the fiscal year ending 30 June 2024. The delay occurred due to the absence of independent directors on the board.

Company officials explained that after the ouster of the Sheikh Hasina-led government in August amid mass protests, the board underwent changes, preventing timely board meetings necessary for publishing annual financials and declaring dividends. 

The company was unable to convene the audit committee, as it must be led by an independent director, which further delayed the publication. As a result, investors remain in the dark about the company's financials and dividend declarations.

Company Secretary Jahangir Azad told The Business Standard that the delay in publishing the annual financials was caused by procedural complexities in appointing independent directors.

"After the change in government, independent directors on the board were removed, which prevented meetings of the audit committee and the nomination and remuneration committee (NRC)," he said.

"The NRC committee's recommendation is required for appointing independent directors. However, due to the absence of the committee, an application for appointing independent directors was submitted to the commission last November, with board approval, to secure regulatory approval."

The company secretary said the commission recently allowed the appointment of independent directors, and following the approval, the process of publishing the financial report and dividend declaration has begun. 

The audit committee has since been formed, and the annual financial statements will be published within the timeframe directed by the commission, he concluded.

The company recorded a loss of Tk626 crore in the fiscal 2022-23 due to foreign currency fluctuations.

In the third quarter of the fiscal 2023-24, Power Grid experienced significant profit growth, driven by rising revenue and favourable foreign exchange rates.

During the January-March period of FY24, its profit soared to Tk217 crore, a remarkable increase from Tk82 crore in Q2 and a turnaround from the Tk101 crore loss in Q1, according to its financial reports.

In Q3, the company saw a 13% increase in revenue, rising from Tk540 crore to Tk612 crore compared to the same period last year.

This revenue growth was bolstered by a foreign exchange gain of Tk193 crore recorded in the third quarter, significantly contributing to the company's overall profit.

Meanwhile, during July to March of FY24, its profit after tax stood at Tk197.41 crore, compared to a loss of Tk392 crore in the same period of FY23.

Among listed government firms, Power Grid Company – a subsidiary of the Bangladesh Power Development Board – had previously maintained consistent profits due to its monopoly in the business.

In June 2024, the BSEC gave consent to Power Grid Company to issue 250.54 crore irredeemable and noncumulative preference shares, each with a face value of Tk10, totalling Tk2,505.40 crore in favour of the Power Division secretary, other than existing shareholders of the company, against share money deposit for the year ended on 30 June 2023.

As of December 2024, out of its total shares, sponsor directors held 58.50%, the government held 22%, institutions held 14.56%, foreign investors held 0.01%, and general investors held 4.93%.

The share price of Power Grid Company closed at Tk40.50 on the Dhaka Stock Exchange on Tuesday, down by 2.17% from the previous trading session.