Power Grid trims losses by 54pc on higher revenue, stable forex

Power Grid has shown signs of recovery, with a year-on-year reduction in losses by as much as 54 per cent to Tk 2.10 billion in FY25, supported by higher revenue and favourable foreign exchange rates.

Consequently, the power transmission company cut its losses to Tk 2.30 per share in FY25, compared to a loss of Tk 6.69 (restated) per share in the previous year, according to price-sensitive information published on Sunday.

The board of directors, however, declared no dividend for the year as retained earnings remained negative.

Favourable foreign exchange rates, due to relative stability in the forex market over the previous year, helped the company narrow its losses, said Power Grid in its earnings note.

Foreign exchange fluctuations had previously caused substantial losses for the company.

The company is yet to publish its detailed financial statements for FY25. Hence, data such as yearly sales, forex losses, and interest expenses are not available yet.

However, its nine-month sales jumped 13 per cent year-on-year to Tk 22.18 billion through March this year, while operating income also surged 13 per cent to Tk 9.56 billion during the same period.

Power Grid has a significant amount of foreign loans taken for various development projects, which must be repaid in US dollars.

The profit or loss has been calculated based on the exchange rates of the US dollar and the euro on the last day of the quarter or financial year.

Although Power Grid's term loans rose 10 per cent year-on-year to Tk 548 billion, its long-term interest-bearing debts fell by 50 per cent to Tk 3.48 billion in the nine months through March this year.

The government has been providing funds to Power Grid from development partners as well as its own resources as shared equity to build infrastructure for integrated and efficient power transmission systems across the country.

The company is responsible for all aspects of transmission lines, substations, load dispatch centres, and communication facilities.

Power Grid will hold its annual general meeting on January 24 next year, and the record date for dividend entitlement has been set for December 1 this year.

The net operating cash flow per share rose to Tk 16.49 in FY25, up from Tk 12.86 per share in the previous year, due to increased collections.

Power Grid suffered a loss of Tk 6.26 billion for the first time in its history in FY23 due to exchange losses stemming from the repayment burden of foreign loans.

Despite the loss, the company paid a 10 per cent cash dividend from retained earnings.

In FY24, the company again incurred a loss of Tk 4.57 billion for similar reasons and declared no dividend for the year as retained earnings turned negative.

Earlier, Power Grid had consistently reported profits and paid handsome dividends to its shareholders as it enjoyed a monopoly in the power transmission business.

The company's stock rose 4.83 per cent to Tk 28.20 per share on the prime bourse on Sunday.

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