IDLC Investments - Company Insight
Friday, 9 March 2012
Company Profile
As a part of power sector reform efforts by Government of Bangladesh (GOB), Dhaka Electric Supply Company Limited (DESCO) was created in November 1996 as a Public Limited Company. Its field level operations started in 1998 with taking over of the electric distribution system of Mirpur area from the previous Dhaka Electric Supply Authority (DESA).
Key Revenue Drivers & Company Insight
As an electricity distribution company, DESCO's revenue mainly stems from electricity sales to the end users. The company purchases electricity at Bulk Tariff and sells the same at Retail Tariff to its customers. Both of the Bulk and Retail Tariff of electricity is fixed by the Bangladesh Energy Regulatory Commission.
In FY2010-11, the company has made some operational improvement regarding reduction of system loss (8.79% in FY10-11 against, 8.86% in FY09-10). Electricity sales in MkWh have increased by 6.3%. Bill collection ratio was stable over the year.
Financial Performance
In the FY10-11, the company suffered from foreign exchange loss due to devaluation of BDT against USD. Net profit after tax registered a 17.4% negative growth in compare to that of FY09-10.
Recently, DESCO has reported net profit after tax of BDT 405.69 million with EPS of BDT 1.95 for the period of six months (July'11 to Dec'11) as against BDT 965.56 million and BDT 4.64 respectively for the same period of the previous year.
As a part of power sector reform efforts by Government of Bangladesh (GOB), Dhaka Electric Supply Company Limited (DESCO) was created in November 1996 as a Public Limited Company. Its field level operations started in 1998 with taking over of the electric distribution system of Mirpur area from the previous Dhaka Electric Supply Authority (DESA).
Key Revenue Drivers & Company Insight
As an electricity distribution company, DESCO's revenue mainly stems from electricity sales to the end users. The company purchases electricity at Bulk Tariff and sells the same at Retail Tariff to its customers. Both of the Bulk and Retail Tariff of electricity is fixed by the Bangladesh Energy Regulatory Commission.
In FY2010-11, the company has made some operational improvement regarding reduction of system loss (8.79% in FY10-11 against, 8.86% in FY09-10). Electricity sales in MkWh have increased by 6.3%. Bill collection ratio was stable over the year.
Financial Performance
In the FY10-11, the company suffered from foreign exchange loss due to devaluation of BDT against USD. Net profit after tax registered a 17.4% negative growth in compare to that of FY09-10.
Recently, DESCO has reported net profit after tax of BDT 405.69 million with EPS of BDT 1.95 for the period of six months (July'11 to Dec'11) as against BDT 965.56 million and BDT 4.64 respectively for the same period of the previous year.