Titas in the red in Q2 for "system loss"

Titas Gas Transmission has reported a loss of Tk 5.23 billion for the second quarter through December of FY25. In the same quarter last year, it earned a profit of Tk 0.40 billion.

The main reason behind the loss is the company's failure to earn enough revenue to recover the cost of goods sold.

In Q2 of FY25, Titas's revenue was Tk 92.05 billion but its cost of goods sold was Tk 95 billion. It incurred a gross loss of Tk 2.96 billion in the quarter.

Titas blamed its poor performance on huge system loss.

In the disclosure, the company reported a system loss of 10.63 per cent, whereas allowable system loss is 2 per cent. The company had to bear a huge amount of purchase liability without getting any revenue.

In the six month to December last year, the company made a loss of Tk 7.11 billion whereas it had a profit of Tk 0.47 billion in the same period a year ago.

The removal of tax exemption was also responsible for the loss, according to the company.

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