DESCO suffers losses of Tk 6.3b in two years

The Dhaka Electric Supply Company (DESCO), a state-owned power distribution entity, has reported losses for three consecutive years despite multiple electricity price hikes.

According to its latest audit report, the company incurred a cumulative net loss of around Tk 6.30 billion (Tk 630 crore) over the past two fiscal years, reports UNB.

The audited financial summary for the 2024–25 fiscal year, published on Sunday through the Dhaka Stock Exchange (DSE), highlights the extent of DESCO’s financial struggles.

For FY2024–25, the publicly listed company recorded a post-tax net loss of Tk 125.23 crore, translating to a loss per share of Tk 3.15. Due to this continued loss, the company has again decided not to issue any dividends to investors, marking the second consecutive year without shareholder returns.

In the previous fiscal year (2023–24), DESCO’s net loss was significantly higher at Tk 505.56 crore, or Tk 12.72 per share. While the latest figure represents a reduction to roughly one-fourth of the prior year’s loss, the company has yet to return to profitability.

The downward trend began in FY2022–23, when DESCO recorded a net loss of Tk 541.21 crore, equivalent to a loss per share of Tk 13.61.

As a result of the sustained financial setbacks, DESCO has refrained from declaring dividends for FY2024–25, continuing the suspension initiated the previous year.

In FY2022–23, the company had distributed a 10 per cent cash dividend to its shareholders. Before that, DESCO consistently offered a 10 per cent cash dividend annually for eight years, except in one fiscal year when it declared a 12 per cent payout.