K-Electric reported a profit of over Rs. 8 billion Pipa News

K-Electric reported a profit of over Rs. 8 billion

In the financial year 2021-2022, K-Electric has committed Rs. retained profit. 8.4 billion, which represents a decline of nearly 30% from earnings in the previous fiscal year. According to the financial data released, the largest power utility saw a Rs 3.5 billion jolt in profitability, up from Rs 11.9 billion in the financial year. 2020-21.

The company’s core operating areas demonstrated strength, driven by sensible strategies. T&D deficit reduced to 15.3 per cent from 17.5 per cent in FY22. The adverse effects of the Mid-Term Review (MTR) decision contributed to this improved performance to some extent. Compared to the previous year, the company’s gross profit climbed 22%.

External factors, such as rising consumer tariffs and the current state of the economy, which have an impact on consumers’ willingness to pay, have caused substantial losses, and have resulted in a significant devaluation of the Pakistani rupee in the foreign exchange market. . Loss, and increase in policy interest rates have resulted in an increase in finance costs.

As a result, the net profit became less than Rs. 11,998 million during FY21 to Rs. 8,524 million. In FY22, earnings per share (EPS) stood at Rs 0.31 per share, down from Rs 0.43 in FY11.

According to the Pakistan Economic Survey 2021-2022, the economy recovered from the negative socioeconomic effects of the COVID-19 pandemic in the first half of FY 2022, with economic activity continuing to pick up in comparison to the previous year. GDP growth in FY 2022 was 5.97 percent.

However, the last quarter of FY 2022 saw significant socio-political issues, particularly at the national and international level, which had an impact on macroeconomic parameters.

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