KEL Annual Profit Reached Rs32.8bn

 In Announcements

K-Electric Ltd finally released its financial results for 2015-16 on Wednesday. It posted a profit of Rs32.8 billion (earnings per share: Rs1.19), reflecting 16 per cent growth over the income of Rs28.3bn in 2014-15. Its share price rose by nine paisa to Rs6.87 on trading in 15 million shares. Net sales remained steady at around Rs190bn for both years. But there was a noticeable decline in the cost of sales, which dropped 11pc to Rs132bn. This helped lift gross profit by 34pc to Rs58bn. The prepayment of expensive long-term financing and decline in working capital requirements as a result of lower furnace oil prices helped the company reduce financial charges by 48pc to Rs5.1bn.

Energy-sector analysts said the April-June quarterly results were in line with their expectations. Analyst Rai Omar Basharat at Topline Securities stated that the quarterly profit amounted to Rs10bn, down 17pc year-on-year. In the fourth quarter, the company’s top line grew 11pc to Rs56.5bn on the back of higher sent-out units owing to warmer weather. It led to receipt of higher tariff adjustment payments. Gross profit in April-June improved 12.7 percentage points to 35pc. The improvement was attributed to higher self-generation of electricity, leading to lower electricity purchase from more expensive external sources and higher thermal efficiency.

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