You are currently viewing KE suffers Rs 2.96 bn revenue loss for COVID-19

KE suffers Rs 2.96 bn revenue loss for COVID-19

KARACHI: K-Electric, issuing its financial results to Pakistan Stock Exchange, declared a loss of Rs 2.96 billion for the fiscal year ending June 30,2020 because of delayed payments of bills as result of COVID-19 pandemic against profit of Rs 17.274 billion for the same period last year.

This was primarily in the backdrop of accumulated government receivables and delayed determination of tariff variations which had severely impacted working capital requirements of the company and driven up finance costs by 166 percent to Rs 16.737 billion vs. Rs 6.285 billion in financial year 2018-19, said KE release here on Thursday.

In spite of these financial challenges emerged after spread of COVID-19 pandemic, over Rs 55 billion had been invested by the company across the generation, transmission and distribution businesses.

Both, industrial and commercial consumption reduction on account of COVID-19 lockdown and load-shed exemption for high-loss areas coupled with the mobility restrictions for theft detection activities, impacted the sales mix of the company.

However, despite these constraints caused by the pandemic, transmission and distribution losses were kept under control; showing a marginal increase of 0.6 percent in 2020 compared to previous year.

Similarly, sales growth of 0.5 percent was witnessed during fiscal year 2019-20. Before COVID-19 spread accelerated, up to March 20, 2020, the company had shown even stronger operational performance with 3.1% growth in units sent-out as well as 2% transmission and distribution loss reduction, year-on-year.

With the easing of lockdown since June 2020, KE’s operational performance is on track for fiscal year 2020-21.

M M Alam

M. M. Alam is a Pakistan-based working journalist since 1981. Karachi University faculty gold medalist Alam began his career four decades ago by writing for Dawn, Pakistan’s highest circulating English daily. He has worked for region’s leading publications, global aviation periodicals including Rotors (of USA) and vetted New York Times as permanent employee of daily Express Tribune. Alam regularly covers international aviation and defense-related events including Salon Du Bourget (France), Farnborough (United Kingdom), Dubai (UAE). Alam has reported thousands of events and interviewed hundreds of people in Pakistan, UAE, EU, UK and USA. Being Francophone Alam also coordinates with a number of French publications.