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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