Published :
Updated :
For all latest news, follow The Financial Express Google News channel.
Power Grid experienced a loss of Tk 1.85 billion in the third quarter through March of FY25 as the burden of repayment against foreign loans intensified.
The state-owned power transmission entity had a profit of Tk 2.17 billion in the same quarter a year ago, according to its unaudited financial statements published on Tuesday.
Subsequently, the company incurred a loss of Tk 2.03 per share in January-March against a profit of Tk 2.37 per share (restarted) in the same quarter of the previous year.
Following the latest earnings disclosure, the stock plunged 9.71 per cent to Tk 31.6 per share on the prime bourse on Tuesday, becoming the day's top loser.
Power Grid's revenue, however, rose 13 per cent year-on-year in the quarter through March to Tk 6.92 billion. Interest expenses and foreign exchange losses wiped out profits.
Its foreign currency transaction loss was Tk 3.72 billion in Q3 of FY25 as opposed to a gain of Tk 1.93 billion in Q3 of FY24, while interest expenses soared 13 times year-on-year in the January-March quarter.
Power Grid has a huge amount of foreign loans taken for various development works. The loans have to be repaid in dollars.
The loss has been calculated on the basis of the price of the dollar and the euro on the last day of the quarter.
At the end of the quarter through March this year, the company's dollar conversion rate was Tk 122, increased from Tk 110 a year ago, while the euro conversion rate jumped from Tk 118.76 to Tk 131.21 during the same period, according to its financial statements.
Power Grid's long-term interest-bearing debts grew nearly 5 per cent year-on-year to Tk 548 billion in the three months to March this year as the state-run entity took on projects to expand transmission lines.
The government has been providing funds to Power Grid from development partners and from its own fund as a shared money deposit to build infrastructure for integrated and efficient power transmission systems across the country.
The company is also responsible for all aspects involving transmission lines, substations, and load dispatch centre and communication facilities.
In the nine months through March, however, losses were slashed to Tk 314 million as the second quarter's profit offset most of the losses in July-March of FY25.
The company's foreign exchange fluctuation loss was reduced to Tk 222 million in the October-December quarter of FY25 from Tk 5.76 billion in the same quarter of the previous year. It capitalized unrealised foreign exchange loss amounting to Tk 2.13 billion in Q2 under capital work-in-progress.
New shares issued against share money deposit
Power Grid issued 201.08 million ordinary shares and 10.15 billion irredeemable and non-cumulative preference shares in favour of the power division secretary in June last year.
The state-run electricity transmission company issued the ordinary shares at Tk 20 each, with a Tk 10 premium, and preference shares at Tk 10 each.
Hence, the total number of shares surged to 913.80 million from 712.72 million as ordinary shares added to the equity shares.
Although irredeemable and non-cumulative preference shares are not included into equity shares, the huge number of shares increased fixed payment liabilities for the company.
Annual performance
Power Grid reported an annual loss of Tk 6.26 billion in FY23 for the first time in its history due to exchange loss against the backdrop of repayment burden of foreign loans.
Despite the loss, the company paid a 10 per cent cash dividend from the retained earnings.
In FY24, the company incurred a loss of Tk 4.57 billion for the same reasons and declared no dividend for the year as its retained earnings turned negative.
Earlier, the company had maintained consistency in profits as it enjoyed a monopoly in business.
babulfexpress@gmail.com