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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