Power Grid secured a profit of Tk 3.64 billion in the first quarter through September this year, marking a strong rebound compared to a loss of Tk 2.56 billion in the same quarter last year, supported by higher revenue and favourable foreign exchange rates.
The state-owned sole power transmission entity recorded a foreign exchange gain of Tk 1.94 billion in the quarter through September this year, compared to a loss of Tk 6.11 billion in the same quarter last year, owing to favourable exchange rates.
Moreover, higher interest income from investments in government securities and bank deposits also helped the company to come out of the red, according to its unaudited financial statements published on Monday.
Following the news, its stock jumped 13.12 per cent to Tk 31.90 on Monday on the Dhaka Stock Exchange, becoming the day's top gainer, despite the overall market closing in the deep red.
Power Grid's revenue, particularly transmission/wheeling charges, rose 10 per cent year-on-year to Tk 9.31 billion in the July-September quarter this year.
Also, finance income jumped to Tk 425 million in the quarter through September this year from Tk 164 million in the same quarter a year earlier.
The company said in its earnings note that the favourable foreign exchange rates, due to relative stability in the forex market, helped it record a foreign exchange transaction gain.
The profit or loss has been calculated based on the exchange rates of the US dollar and the euro on the last day of the quarter.
The company's dollar-taka exchange rate was Tk 121.82 at the end of the September quarter, down from Tk 122.85, while the euro conversion rate was Tk 142.87, compared to Tk 143.99.
Power Grid had term loans of Tk 610 billion, while interest-bearing debts stood at Tk 15 billion as of September this year.
The government has been providing funds to Power Grid from development partners as well as from its own resources as shared equity to build infrastructure for integrated and efficient power transmission systems across the country.
The company is responsible for all aspects of transmission lines, substations, load dispatch centres, and communication facilities.
Power Grid issued shares worth Tk 80.43 billion to the government against share money deposits in June last year.
However, the company has further received Tk 31.15 billion from the government as share money deposits as of September this year for the implementation of different projects.
Meanwhile, Power Grid suffered a loss of Tk 6.26 billion for the first time in its history in FY23, and cumulative losses stood at around Tk 13 billion in the past three years to June this year, due to exchange losses stemming from the repayment burden of foreign loans.
Due to heavy losses, the company skipped dividend declarations for the past two years - FY24 and FY25 - as retained earnings turned negative.
Power Grid was transferred to the 'Z' category from the 'A' category with effect from today (Tuesday), as it declared no dividend for two consecutive years.
Earlier, Power Grid had consistently reported profits and paid handsome dividends to its shareholders as it enjoyed a monopoly in the power transmission business.
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