In the fiscal year 2021–2022, K-Electric maintained a profit of Rs. 8.4 billion, which represents a decline of approximately 30% from earnings in the prior fiscal year.According to the financial statistics released, the biggest power utility saw a shock of 3.5 billion rupees in profitability, which stood at 11.9 billion rupees in the fiscal year 2020–21.
The company’s core operational areas demonstrated strength, driven by sensible strategies. T&D losses decreased even more from 17.5 to 15.3 percent in FY 2022. The unfavourable effects of the Mid-Term Review (MTR) decision contributed to this better performance to some extent. When compared to the previous year, the company’s gross profit climbed by 22%.
External factors, such as rising consumer tariffs and the current state of the economy, which have an impact on consumers’ willingness to pay, have caused more impairment loss, and a significant devaluation of the Pakistani rupee on the foreign exchange market has resulted in exchange loss, and an increase in policy interest rates has resulted in an increase in finance costs.
As a result, the net profit decreased from Rs. 11,998 million during FY 2021 to Rs. 8,524 million. In FY22, the Earnings Per Share (EPS) stayed at 0.31 rupees per share, down from 0.43 rupees in FY21.
According to the Pakistan Economic Survey 2021–2022, the economy rebounded from the negative socioeconomic effects of the COVID-19 epidemic in the first half of FY 2022, with economic activity continuing to pick up steam from the previous year. FY 2022 had a GDP growth of 5.97 percent.
However, the last quarter of FY 2022 in particular saw significant socio-political issues on the national and international levels, which had an impact on the macroeconomic parameters.