K-Electric registers a 58% decline in net profits during 1QFY21

By MG News | November 27, 2020 at 06:08 PM GMT+05:00

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November 27, 2020(MLN): K-Electric Limited has announced its financial results for the 1^st quarter ended September 30,2020 as per which, it has earned net profits of Rs 1.11 billion (EPS: 0.04), i.e. 58% lower than the net profits recorded in the same period of last year.

Pursuant to the details provided to Exchange, the company witnessed around a 5% decline in revenue on the back of decreased tariff adjustments (down by 37% YoY) whereas, the cost of sales fell by 7% YoY owing to a reduction in consumption of fuel and oil. However, the company managed to increase its gross profits by 7% YoY to Rs 13.86 billion during the said period.

The increase in the company’s other operating expenses by 2.36 times YoY, a 50% increase in impairment loss against trade debts along a 51% decline in non-income, undermined the financial health of the company during the period.

However, a decrease in the finance costs by 17% YoY, as well as income tax expense by 24%, provided some solace to the wellbeing of the company.

Financial Results for the quarter ended September 30, 2020 ('000 Rupees)
	Sep-20	Sep-19	% Change
REVENUE
Sale of energy-net	68,401,199	62,621,625	9.23%
Tariff adjustment	17,148,508	27,339,443	-37.28%
	85,549,707	89,961,068	-4.90%
COST OF SALES
Purchase of electricity	(27,582,204)	(26,870,302)	2.65%
Consumption of fuel and oil	(37,456,175)	(44,319,479)	-15.49%
Expenses incurred in generation, transmission and distribution	(6,643,191)	(5,857,178)	13.42%
	(71,681,570)	(77,046,959)	-6.96%
GROSS PROFIT	13,868,137	12,914,109	7.39%
Consumer services and administrative expenses	(5,931,219)	(5,531,953)	7.22%
Impairment loss against trade debts	(3,922,093)	(2,616,660)	49.89%
Other operating expenses	(338,434)	(142,933)	136.78%
Other income	1,490,107	3,048,985	-51.13%
PROFIT BEFORE FINANCE COST	5,166,498	7,671,548	-32.65%
Finance cost	(3,020,580)	(3,642,834)	-17.08%
Taxation	(1,034,878)	(1,362,611)	-24.05%
PROFIT AFTER TAXATION	1,111,040	2,666,103	-58.33%
EARNINGS PER SHARE-Basic and diluted	0.04	0.10	-60.00%

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