Desco's losses shrink as revenue grows 16%
The net loss of Dhaka Electric Supply Company (Desco), a state-owned power distributor, fell to Tk78.55 crore in the first nine months (July–March) of the current fiscal year, with a loss per share of Tk1.98.
According to its unaudited financial statement, the improvement was mainly driven by higher distribution revenue.
The report showed that net turnover surged 16% to Tk5,410.58 crore during the period, while net loss narrowed by around 71% compared to the same period of the previous fiscal year.
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In the July–March period of the previous fiscal year, Desco had incurred a loss of Tk270.81 crore due to higher operating expenses, foreign exchange losses, and debt interest.
The net operating cash flow per share increased by 351% in the first nine months of FY25 due to higher receipts from electricity supply and lower payments to the Bangladesh Power Development Board for power purchase, said the company in a statement on its website.
However, its net turnover in the third quarter (January to March), increased by 17% to Tk1,536 crore, and incurred a loss of Tk72.48 crore with a Tk1.83 loss per share.
During the same period of the previous fiscal year, its net turnover was Tk1,308 crore, and its loss was Tk75.38 crore, its report showed.
The Desco had suffered a significant setback as it incurred heavy losses for the last two consecutive fiscal years for FY23 and FY24 due to disproportionate hikes in bulk and retail electricity tariffs, as well as dollar rate volatility.
Once a fundamentally strong and profitable electricity supplier to retail customers, Desco incurred losses of Tk541 crore in FY23 and Tk505 crore in FY24.
As a result, its retained earnings have turned negative, and for the first time since listing, the firm failed to pay any dividends to its shareholders, 67.66% stake held by the government and the rest 32.34% by general investors.
After facing the blow as the foreign currency volatility eased, it witnessed improvement in its financials.
On Thursday, the last trading session of the last week, its share prices closed at Tk27.20 each at the Dhaka Stock Exchange (DSE).
