Power Grid Company gained a profit of Tk 817 million in the second quarter to December last year, a strong rebound when compared to a loss of Tk 3.93 billion in the same quarter a year earlier.
Its foreign exchange losses came down to Tk 222 million in the quarter through December last year from Tk 5.76 billion in the same quarter of the previous year.
Moreover, a reduction in administrative costs coupled with a higher interest income helped the company to secure a profit, according to its unaudited financial statements published on Tuesday.
Despite an increase in long-term loans, finance expenses dropped 81 per cent year-on-year to Tk 1.36 billion during the second quarter of FY24. The company did not provide any explanation in its financial statements.
Power Grid's long-term debt burden rose 8 per cent year-on-year to Tk 434 billion in October-December 2023 as the state-run entity took various development projects to expand transmission lines. The government has been supporting Power Grid with funds from development partners and its own fund.
Company secretary Md Jahangir Azad could not be reached for comments.
Half-yearly Performance
Despite returning to profit in the second quarter, the company remained in the red for six months through December last year as heavy losses in the first quarter wiped out the profit in Q2.
The company reported a net loss of Tk 193 million for July-December last year although revenue increased by 10 per cent to Tk 13.50 billion. In the same period a year earlier, it suffered a loss of Tk 2.81 billion.
Power Grid, which is a subsidiary of the Bangladesh Power Development Board (BPDB), is the government's sole entity for planning, developing, operating, and maintaining an integrated and efficient power transmission system across the country.
Power Grid suffered a record annual loss of Tk 12.74 billion in FY23 due to exchange rate volatility that increased the burden of repayment against foreign loans.
Earlier, the company maintained a consistency in profits, enjoying a monopoly in business.
Stock performance
Power Grid's stock price soared 6.5 per cent to Tk 45.9 per share on Tuesday on the Dhaka Stock Exchange.
After remaining on the floor for 18 months, the stock plunged more than 17 per cent in the first five days after the removal of the price restriction.
Issuing shares against share money deposit
Last year, Power Grid decided to issue 7.64 billion irredeemable and non-cumulative preference shares at a face value of Tk 10 each amounting to Tk 76.41 billion.
The shares will be issued to the power division secretary against funds received from the government as share money deposit to comply with a regulatory directive. Share money deposit is the money paid in exchange for shares that have not been acquired yet.
After the issuance of the shares, its earnings will be diluted.
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