K-Electric Limited (KE), a leading power generation and supply company, has reported an impressive 222 percent increase in net profit for the quarter ending March 31, 2021.
This remarkable growth comes despite facing substantial impairment losses against trade debts during the same period.
According to the quarterly financial results submitted to the Pakistan Stock Exchange (PSX) on Wednesday, K-Electric declared a net profit of Rs2.57 billion for the quarter ending March 31, 2021. This is a significant rise compared to the Rs797 million profit recorded in the corresponding period of the previous year.
The company’s revenue, which includes the sale of energy and tariff adjustments, stood at Rs73.66 billion for the quarter under review. This represents a notable increase from the Rs62.95 billion reported in the same quarter last year. The surge in revenue highlights KE’s successful strategies in expanding its market and optimizing tariff structures.
The cost of sales for the quarter also saw an increase, rising to Rs57.38 billion from Rs50.19 billion in the corresponding period of the previous year. Despite this rise, the gross profit of the company grew substantially to Rs16.27 billion, up from Rs12.76 billion, reflecting efficient cost management and improved operational performance.
A significant challenge for KE during this quarter was the impairment loss against trade debts, which skyrocketed to Rs6.63 billion. This marks a 525 percent increase compared to the Rs1.063 billion recorded in the same quarter of the previous year. The sharp rise in impairment losses underscores the difficulties faced in debt recovery amidst economic challenges.
Despite these hurdles, K-Electric financial performance for the nine months ending March 31, 2021, remained robust. The company declared a net profit of Rs9.44 billion for this period, a substantial increase from the Rs3.59 billion reported in the same period last year.
The company’s strong financial results are indicative of its resilience and effective management strategies in navigating through challenging economic conditions. K-Electric ability to achieve significant profit growth while managing rising costs and impairment losses demonstrates its commitment to maintaining operational efficiency and financial stability.
Looking forward, K-Electric aims to continue its focus on enhancing customer service, optimizing operational efficiencies, and implementing strategic initiatives to drive further growth. The company’s positive financial performance sets a solid foundation for future progress and reaffirms its position as a key player in Pakistan’s energy sector.
The reported figures underscore K-Electric success in overcoming adversities and achieving substantial profit growth, a testament to its strategic direction and robust operational framework.
