The company said tax payments and additional costs to blame
K-Electric Limited reported a net profit of Rs128 million or Rs0.01 per share for the quarter ending December 2019—down 94% compared to Rs2 billion or Rs0.08 per share it earned in the same period of 2018, the company’s financial results revealed Tuesday.
The Karachi-based power utility and distributor saw its revenue decline 4% to Rs68 billion in the quarter ending December 2019 compared to Rs71 billion for the same quarter of the comparable period of 2018.
The company’s financial report attributed the decline in profits to tax payments and additional financial costs.
K-Electric has paid Rs2 billion in taxes for the half year ended December 31, 2019. While in the same period last year, K-Electric had paid Rs710 million in taxes.
KE’s finance cost increased to Rs4.4 billion for the quarter ended December 2019, compared to Rs1.5 billion for the same quarter of the previous year.
KE’s stock was the second most traded stock today (Tuesday) with 36 million shares changing hands on the Pakistan Stock Exchange. The stock was trading at Rs3.88 per share at the close of trade on Tuesday, up by 5.4% compared to the previous day’s close at Rs3.68.
KE is principally engaged in generation, transmission and distribution of electric energy to industrial, commercial, public sector and residential consumers under the Electricity Act, 1910 and NEPRA Act, 1997, both as amended to date, to its licensed areas. The company reserves exclusive rights for distributing power within its service territory i.e. Karachi and adjoining areas of Sindh and Balochistan and serves over 2.9 million consumers.