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Dhaka Electric Supply Company (DESCO) returned to profit in the second quarter of FY25 as its distribution revenue escalated 115 per cent year-on-year to Tk 2.23 billion during the period.
DESCO earned Tk 261.68 million in October-December last year while it had a loss of Tk 434.66 million during the same quarter a year earlier.
The company had shown losses for the last two financial years for not earning enough operating revenue to cover operating expenses. That happened because electricity purchase prices soared but DESCO was unable to charge its customers more.
The latest financial statement shows signs of change.
In the October-December quarter of FY25, DESCO earned more from selling electricity than in the same period of the previous year. In the second quarter of FY24, it earned Tk 7.02 by supplying electricity worth Tk 100 but in the same quarter of FY25 it earned Tk 12.82 from distributing electricity of Tk 100.
Also, DESCO had a 47 per cent higher income in Q2, FY25 in miscellaneous operating income, compared to the same quarter a year ago. It also reported a higher income in the segment of other income.
Miscellaneous operating income included payments made by customers for materials and as meter rents.
DESCO used to provide some materials for free earlier but started charging customers recently.
According to the company, EPS rose as a result of higher distribution revenue.
After the disclosure, the stock rose 6.06 per cent to Tk 24.50 per share on the Dhaka Stock Exchange (DSE) on Sunday.
In the six-month period to December last year, the company was unable to recover losses. However, the amount of losses fell year-on-year.
In July-December last year, the loss was Tk 60.7 million, which was Tk 1.95 billion in the same period of the previous year.