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K-Electric finally releases financial results after several delays

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July 4, 2019 (MLN): After years of delays and interruptions, the Board of Directors of K-Electric Limited ultimately held a meeting on July 04, 2019 to consider the financial statements for the year ended 30 June, 2017.

The company also released the financial results for the quarters ended September 30, 2016, December 31, 2016, and March 31, 2017. The result for the year ended June 30, 2017 shows that the company’s net profits fell by 67% to Rs. 10.4 billion as compared to last year. 

The fall in net earnings can be easily attributed to sales revenue, which exhibited a negative growth of 2.52% during the period. On the other hand, cost of sales grew by a margin of 9.8%, which consequently dragged down company’s gross profit by almost 31%.

Nonetheless, there were quite a few elements which provided some respite to the company’s financial positon. One of these elements was the non-core income, which grew by almost 41%. This was followed by Finance cost, which plunged by nearly 23%. However, the biggest relief came in the form of reduction in tax expense by a whopping 75%.

The Earnings per share of the company for the aforesaid period were stated at Rs. 0.38, as compared to Rs 1.15 last year.

It would be worthwhile to recall that K-Electric in its various announcements informed SECP, PSX and shareholders of the company that due to non-availability of valid tariff for the year starting 10th July 2016, the company could not prepare the financial statement on the basis of estimation in the absence of basic topline revenue number and hold AGM for FY17.

Due to delay in holding of AGM for FY17 and finalization of financial statements for the said year, the company was not in a position to finalize the financial statements for the year ended 30th June 2018, initiate audit process and hold AGM for FY18 within the specified time limit.

 

Profit and loss account for the year ended June 30 2017 (Rupees'000)

 

Jun-17

Jun-16

% Change

Sale of energy – net

168,569,213

166,517,327

1.23%

Tariff adjustment

15,285,893

22,089,527

-30.80%

Revenue

183,855,106

188,606,854

-2.52%

       

Purchase of electricity

-61,665,237

-54,309,231

13.54%

Consumption of fuel and oil

-61,466,583

-57,266,315

7.33%

Expenses incurred in generation, transmission and distribution

-21,198,151

-19,876,732

6.65%

Cost of sales

-144,329,971

-131,452,278

9.80%

       

Gross profit

39,525,135

57,154,576

-30.85%

Consumers services and administrative expenses

-35,066,159

-30,714,925

14.17%

Other operating expenses

-1,254,850

-3,048,986

-58.84%

Other income

9,398,778

6,660,303

41.12%

Profit before finance cost

12,602,904

30,050,968

-58.06%

Finance cost

-3,891,178

-5,099,520

-23.70%

Profit before taxation

8,711,726

24,951,448

-65.09%

Taxation

1,707,557

6,855,908

-75.09%

Net profit for the year

10,419,283

31,807,356

-67.24%

Earnings per share – Basic and diluted

0.38

1.15

-66.96%

 

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Posted on: 2019-07-04T16:29:00+05:00

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