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

November 27, 2020(MLN): K-Electric Limited has announced its financial results for the 1st 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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Posted on: 2020-11-27T18:08:00+05:00

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