Desco profit falls despite revenue growth
The company’s revenue went up by 6% in that quarter, compared to the same time of the previous year
Highlights:
Key financials in FY22 Q1
- Net turnover increased by 6%
- Profit fell 46% due to dollar price fluctuation
- Energy consumption rose 10%
- EPS declined to Tk0.14 from Tk0.27
- More than 10.81 lakh consumers till June 2021
Dhaka Electric Supply Company (Desco) – the state-owned electricity distributor – posted a 46% decline in net profit, despite a slight growth in revenue due to an increase in energy consumption in the July-September period of FY22.
Keep updated, follow The Business Standard's Google news channel
The company's revenue went up by 6% in that quarter, compared to the same time of the previous year.
"During that period, energy consumption rose by around 10%. As energy consumption increased, our profit also rose but due to a fluctuation of dollar price, our profit declined," said Md Kausar Ameer Ali, managing director of Desco.
"Due to fluctuations in the dollar's value, the company had to spend about Tk16 crore extra in that quarter. If it had not happened, our profit would have been higher compared to the previous year," he said.
According to the company's financials, in the first quarter of FY22, its net turnover rose to Tk1,293.55 crore from Tk1,219.62 crore in the same period of the previous year.
Its net profit after tax declined to Tk5.50 crore, which was Tk10.53 crore in the same time of the previous fiscal year.
The company's earnings per share (EPS) stood at Tk0.14 in the July-September quarter, which was Tk0.27 at the same time of the previous fiscal year.
Its net asset value (NAV) stood at Tk2,600.21 crore in September 2021, which was Tk2,593.87 crore at the end of June this year.
The Desco was established to provide uninterrupted and stable power supply, better consumer service, and improve system loss ratio.
It started its commercial operation in 1998. The company was listed on the stock exchanges in 2006.
In the FY21 fiscal, the company made a profit of Tk73.91 crore and its EPS was Tk1.86, while its profit was Tk45.56 crore and EPS Tk1.15 in FY20.
Based on the profit, the company had recommended a 10% cash dividend for its shareholders.
