Qudsia Bano

Karachi-Electric Limited has released its six-month financial summary, reporting a 22% year-on-year revenue growth. The company’s sales pushed up to Rs265.6 billion in 6MFY23 from Rs217.4 billion over the same period last year, reports WealthPK, quoting the summary.

However, the company recorded a decline of 44% in gross profit, which plunged to Rs18.6 billion in 6MFY23 from Rs33.2 billion over the same period last year.

K-Electric also reported a loss-before-tax of Rs24.9 billion during the period under review compared to a before-tax profit of Rs5.2 billion over the same period last year, posting a massive decline of 579%.

The company also recorded a net loss of Rs27 billion in 6MFY23 compared to a net profit of Rs3.3 billion in the same period last year, registering a big yearly decline of 916%.

Despite the decline in gross profit and profits before and after tax, K-Electric remains optimistic about its prospects. The company has been investing in various initiatives to improve the reliability of its services, enhance its customer experience, and ensure operational efficiencies.

Performance in 2021-22

The company experienced a significant year-on-year growth in its total revenue in FY22, which increased 60% to Rs518.78 billion from Rs325.05 billion in FY21 22.

K-Electric’s gross profit increased by 22% from Rs59.19 billion in 2020-21 to Rs72.42 billion in 2021-22.

Despite the increase in total revenue and gross profit, the company’s before-tax profit decreased 63% from Rs15.35 billion in FY21 to Rs5.65 billion in FY22. Similarly, the net profit decreased by 29% from Rs11.99 billion in FY21 to Rs8.52 billion in FY22.

The company’s earnings per share (EPS) also decreased by 28% from Rs0.43 in 2020-21 to Rs0.31 in 2021-22.

Overall, K-Electric’s annual summary for 2021-22 reveals a mixed performance, with significant growth in revenue but a decline in profits. The company has attributed these results to a combination of factors, including an increase in power generation and distribution costs, and a decrease in tariff rates.

About the company

K-Electric was incorporated as a limited liability company in September 1913 under the now repealed Indian Companies Act, 1882, as Karachi Electric Supply Company. It was privatised in 2005 as K-Electric. The company is principally engaged in the generation, transmission, and distribution of electric energy to industrial and other consumers under the Electricity Act, 1910, and NEPRA Act, 1997.

Credit : Independent News Pakistan-WealthPk