Doreen Power's profit goes down 66pc in Jan-Mar on higher import costs

Doreen Power Generations and Systems' profit slumped 66 per cent year-on-year in the third quarter of FY23 mainly due to the stronger dollar against the local currency.
The power generation company made a consolidated profit of Tk 187 million in the January-March quarter.
Earnings per share stood at Tk 1.03, down from Tk 3.02 (restated) in the same quarter a year ago, according to a regulatory filing with the Dhaka Stock Exchange on Tuesday.
The profit dropped drastically due to a significant increase in the exchange loss in foreign currency transactions, incurred by subsidiary companies, the company said in a disclosure.
Doreen Power has three subsidiaries --- Dhaka Southern Power Generations, Dhaka Northern Power Generations and Chandpur Power Generation with a combined capacity to generate 291MW power.
Company secretary Masudur Rahman Bhuiyan refused to make any comment.
The businesses, particularly import-dependent companies, have been going through challenges due to the currency devaluation since the beginning of the Russia-Ukraine war.
The cost of imports and repayment of foreign loans soared.
The power generation companies have been hit hard as furnace oil, the fuel used to generate electricity, became costlier in recent quarters.
The US dollar has appreciated by about 25 per cent against the taka since February last year.
The company's consolidated net profit slumped 76 per cent year-on-year to Tk 324 million in the nine months through March this year.
The consolidated net operating cash flow per share stood at Tk 6.44 in the nine months through March 2023 as against Tk (9.93) (restated) for the
same period last year. The cash flow increased because of a significant recovery of receivables from the power development board.
The stock has been stuck at floor price of Tk 61 each share since November 8 last year.
However, Doreen Power's annual profit had soared 43 per cent to Tk 1.67 billion in FY22 and it paid 30 per cent dividend (18 per cent cash and 12 per cent stock dividend).
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