Power Grid Company reports strong profit driven by foreign exchange gains
After suffering losses for two consecutive years, the Power Grid Company of Bangladesh has achieved a significant year-on-year profit in the second quarter of the current fiscal year 2024-25 riding on gains from foreign exchange.
In the October–December quarter, the state-owned power transmission firm made a profit of Tk398.22 crore, which is 387.47% higher than Tk81.69 crore in the same period of the previous fiscal year. The company generated revenue of Tk678.62 crore, up from Tk592.65 crore a year ago.
According to the quarterly statement, the company recorded a foreign exchange gain of Tk338.42 crore, compared to Tk22.21 crore in the same period of the previous year. However, in FY24, its foreign exchange loss stood at Tk1,098 crore.
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The share price of the company closed at Tk32 on the Dhaka Stock Exchange yesterday. The company's share price declined by 24% over just 10 trading sessions due to its decision not to recommend any dividends for shareholders last month. In February of the previous year, Power Grid's share price was above Tk52.
In the October–December quarter, its earnings per share stood at Tk4.36, marking a 279% increase from Tk1.15 in the previous year. At the same time, its net asset value per share stood at Tk141.66 as of December 2024.
Despite achieving revenue of Tk2,786 crore in FY24, the company incurred a loss of Tk457 crore. The company has suffered significant losses in the last two fiscal years despite its strong revenue performance. In FY23 and FY24, it reported losses of Tk712 crore and Tk457 crore, respectively.
Power Grid Company of Bangladesh Company Secretary Jahangir Azad told TBS that it achieved significant profits due to favourable foreign exchange rates, calculated based on the rates as of 31 December 2024.
He explained that foreign exchange fluctuations had previously caused substantial losses for the company over the past two years. This was primarily because the company had taken foreign loans for development projects, which needed to be repaid in dollars and other foreign currencies. The recent gains from exchange rate adjustments have helped the company recover and post a profit.
Jahangir said the company secures loans under various projects each year to establish power transmission lines.
Among listed government firms, the Power Grid Company — a subsidiary of the Bangladesh Power Development Board (BPDB) — had previously maintained consistent profits due to its monopoly in the business.
According to the financial statements, as of December 2024, the company's debt burden stood at Tk5,208 crore.
Financial records show that Power Grid Company has taken loans from multiple institutions, including the Asian Development Bank, Swedish International Development Cooperation Agency, Danish International Development Agency, Nordic Development Fund, Japan International Cooperation Agency, HSBC, Islamic Development Bank, Exim Bank of India, and the Asian Infrastructure Investment Bank.
Among these, loans from ADB amount to Tk11,764 crore, the highest. Additionally, government loans stood at Tk8,285 crore while Tk360 crore came from DESA.
As of 31 December 2024, the company's shareholding structure was as follows: sponsors and directors jointly held 58.50% of the shares, the government-owned 22%, institutions held 14.56%, foreign investors owned 0.01%, and the public held 4.93%.
