K-Electric Posts Staggering Loss of Over Rs. 27 Billion in First Half of FY23

K-Electric has posted a massive loss after tax of Rs. 27 billion during the half-year that ended on December 31st, 2022, compared to a profit of Rs. 3.2 billion in the same period last year (SPLY).

The financial results announced stated that Pakistan’s largest power utility suffered a shock of Rs. 10.7 billion in losses during October-December FY23, a big drop from Rs. 395 million profit in 2QFY22.

According to a statement released by the company, surging inflation, policy rate hike, and reduction in economic activity had a significant impact on the Company’s operations and profitability.

According to K-Electric’s consolidated results, its net revenue went up by 9 percent to Rs. 163 billion in 1HFY23 against Rs. 149 billion in SPLY. The cost of sales soared to Rs. 247 billion, compared with Rs. 184 billion last year.

The company’s gross profit decreased by 43.8 percent from Rs. 33.1 billion to Rs. 16.6 billion in 1HFY23. External factors include an increase in consumer tariffs and domestic economic conditions impacting consumers’ propensity to pay.

The Company observed a reduction in units sent out by 5.7 percent on account of a reduction in economic activity and an increase in impairment loss against doubtful debts. The finance cost jumped by 101 percent to Rs. 12.7 billion in the first 6 months of FY23 mainly on account of an increase in effective rate of borrowing and higher levels of borrowing due to non-payment of dues by Government entities which have surged to an alarming level of Rs. 79.6 billion on a net principal basis.

Impairment loss against trade debts and other receivables surged by 95 percent to Rs. 18 billion during the half year, and Rs. 10.2 billion during Q2. Meanwhile, the company paid Rs. 2.12 billion in taxes during H1, which is 12.7 percent more than what it paid in SPLY.

K-Electric posted a loss per share (LPS) of Rs. 0.98 during 1HFY23, as compared to earnings per share of Rs. 0.12 last year.

At the time of filing, the company’s scrip at the bourse was Rs. 2.10, down 1.87 percent or Rs. 0.04 with a turnover of 2.48 million shares on Tuesday.

  • Aur lagao BQ3 RLNG project, abhi tu just start hai, policies per dayan do KE walo, worst and incompetent leadership betha k top per tu ye hi progress hogi na, still time to thing, strategies to rebuild and competent leadership to hire otherwise utter downfall is expected.

  • Get Alerts

    Follow ProPakistani to get latest news and updates.

    ProPakistani Community

    Join the groups below to get latest news and updates.