Power Grid gains profit in Q3, supported by exchange rate stability
Published :
Updated :
For all latest news, follow The Financial Express Google News channel.
Power Grid Company gained a profit of Tk 2.17 billion in January-March this year, a remarkable turnaround from the loss of Tk 0.5 billion in the same period a year ago.
Asif Khan, chairman of EDGE Asset Management, said stability in foreign exchange rates mainly helped the company return to profit. "All companies with foreign debts availed of the benefits of the stability in foreign exchange rates."
In case of calculating the foreign exchange gain/loss, the Power Grid considers the exchange rates observed on the accounting day, the last day of any reporting period.
There was no significant deviation in exchange rates during January-March, FY24.
Md. Jahangir Azad, company secretary of Power Grid, said that apart from the stability in the dollar-taka exchange rates, the rate of Euro against the local currency slid a bit during the third quarter lessening the repayment burden.
"That's why Power Grid is able to report positive earnings for the quarter."
The company incurred a loss of Tk 3.09 billion in finance expenses in January-March of the previous fiscal year. Due to the stability in forex market, finance expenses for the quarter through March, FY24 turned a positive value of Tk 428.32 million.
Besides, Power Grid experienced a marginal year-on-year growth in revenue income generated from transmission/wheeling charge in Q3, FY24.
The company secretary said the wheeling charge had gone up by Tk 0.02 per unit during the quarter. Rental and grant income jumped 116 per cent in Q3, FY24, compared to the same quarter of the previous fiscal year.
Meanwhile, the income from deposits escalated for higher interest rates.
The stability in the currency market also helped the company secure a profit in the nine months to March, FY24 whereas it had sustained a heavy loss during the same time a year earlier.
Power Grid reported a profit of Tk 1.97 billion for July-March, FY24 against a loss of Tk 3.32 billion for the same period of the previous fiscal year.
Power Grid, an 'A' category company, witnessed a record loss of Tk 6.26 billion in FY23 when the Taka witnessed a steep loss in value against the greenback.
Meanwhile, the stock declined to Tk 39.5 per share on the Dhaka Stock Exchange on April 18 from Tk 52.10 per share on February 22. On Thursday, it closed at Tk 41.60 per share.