Higher deferred tax drags Desco profit 15% down
The state-owned company has declared a 10% cash dividend for FY22
The net profit of Dhaka Electric Supply Company (Desco) Limited has dropped by 15% year-on-year in the fiscal 2021-22.
"The profit declined because of the company's provision of a higher deferred tax as per the income tax law," Desco said in a stock exchange filing on Sunday.
The deferred tax liability on a company's balance sheet represents a tax that it's obligated to pay in the future.
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Contacted over the phone, Desco's Company Secretary Engineer Md Atiqur Rahman declined to inform the amount of the deferred tax.
In FY22, the state-owned electricity distributor's profit stood at Tk63.09 crore, which was Tk73.91 crore in the previous fiscal year. Its earnings per share (EPS) stood at Tk1.59 in FY22.
Its energy sales increased by 13% and distribution revenue by 8% year-on-year while operating profit increased by 12.91% to Tk196.78 crore.
The disclosure also reads that the company has recommended a 10% cash dividend for FY22.
The annual general meeting (AGM) will be held on 14 January 2023 through a digital platform and the record date has been fixed on 17 November 2022.
Desco started its commercial operation in 1998 and got listed on the county's stock exchanges in 2006.
