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Power Grid Company has declared a 387 per cent growth in profit in the second quarter through December of FY25, compared to the same quarter of FY24, on higher energy transmission and a reduction in finance cost.
Its profit stood at Tk 3.98 billion in October-December last year. EPS stood at Tk 4.36 in the quarter, increased from Tk 1.15 per share a year earlier.
Due to higher demand for electricity in the country, the state-run power transmission company earned 15 per cent higher revenue year-on-year to Tk 6.8 billion in Q2, FY25.
This increase in profit not only came from the surge in revenue but also due to the cooling of the dollar crisis.
In the second quarter of FY25, the company's interest expense was Tk 1.72 billion but profit from foreign exchange fluctuation is Tk 3.38 billion. This turned their finance cost positive, whereas the finance expense of the company was Tk 1.36 billion in the negative in Q2, FY24.
Profit from foreign exchange fluctuation is a gain that occurs when a company buys or sells goods and services at a lower-than-expected rate in a foreign currency that fluctuates in value relative to the company's home currency.
This gain is also known as a foreign exchange gain.
Company secretary of Power Grid Md. Jahangir Azad told the FE that "the price of Japanese yen and EURO had fallen so we had some gain in foreign exchange fluctuation".
The company earned a profit of Tk 1.4 billion in July-December last year while it endured a loss of Tk 0.2 billion in the same period a year ago.
On Wednesday, the stock traded at Tk 32 per share on the Dhaka Stock Exchange.
The consolidated net operating cash flow per share, a measure of a company's ability to generate cash from its operations, rose to Tk 11.70 in the first half of FY25 from Tk 10.15 in the same period of FY24.
The company explained that cash flow had increased due to the increase in collection of receivables from customers and less interest payment.
The net asset value, which refers to the excess of total assets over total liabilities, went up to Tk 141.66 per share as of December from Tk 132.61 per share in June last year.
Annual Financial Performance
Power Grid Company of Bangladesh showed an annual loss of Tk 4.57 billion in FY24. In FY23, the loss was Tk 7.12 billion.
The company paid no dividends for FY24 and 10 per cent cash dividend for FY23.
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