K-Electric’s net profits surge by 40% YoY on account of upward tariff adjustment

MG News | April 09, 2020 at 05:20 PM GMT+05:00

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April 9, 2020 (MLN): K-Electric Limited (KEL), the sole electricity provider in Karachi has unveiled its financial performance for the year ended June 2019 as per which the company has booked net profits of Rs 17.2 billion which was 40% higher than the profits of Rs 12.3 billion earned in the same period of last year.

The has reflected in KEL’s earnings per share which also rose by 40% YoY from Rs 0.45 per share to Rs 0.63 per share.

KEL’s profitability improved mainly on the back of upward tariff adjustment of worth Rs 97.4 billion compared to last year adjustment of Rs 32.9 billion and sustained progress in key financial indicators during the year.

The other important contributing factors towards improved financial results of the company were the marginal increase in company’s generation, transmission and distribution expenses and increase in sales of energy by Rs 7.5 billion.

Furthermore, the company also enjoyed a tax reversal of Rs 8.39 billion which further boosted KEL’s profitability.

Financial Results for the year ended June 30th, 2019 (Rs '000)
	Jun-19	Jun-18	% change
REVENUE
sale of Energy-net	191,674,571	184,155,557	4%
Tariff adjustment	97,444,499	32,970,950	196%
	289,119,070	217,126,507	33%
COST OF SALES
Purchase of Electricity	(95,153,398)	(77,454,783)	23%
Consumption of fuel and oil	(120,616,728)	(71,870,026)	68%
expenses incurred in generation, transmission and distribution	(22,642,835)	(22,504,522)	1%
	(238,412,961)	(171,829,331)	39%
GROSS PROFIT	50,706,109	45,297,176	12%
Consumers services and administrative expenses	(25,196,447)	(20,846,255)	21%
Impairment loss against trade debts	(12,873,209)	(13,843,173)	-7%
Other operating expenses	(5,033,029)	(2,122,422)	137%
Other income	7,563,950	8,470,214	-11%
	(35,538,735)	(28,341,636)	25%
PROFIT BEFORE FINANCE COST	15,167,374	16,955,540	-11%
Finance cost	(6,284,677)	(3,236,292)	94%
PROFIT BEFORE TAXATION	8,882,697	13,719,248	-35%
Taxation	8,390,920	(1,407,418)
NET PROFIT FOR THE YEAR	17,273,617	12,311,830	40%
EARNING PER SHARE-BASIC AND DILUTED	0.63	0.45	40%

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