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

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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Posted on: 2020-04-09T17:20:00+05:00

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