Fakiha Tariq

The power generation and distribution sector collectively declared a gross profit of Rs23 billion, but a net loss of Rs5.3 billion on the sales of Rs115 billion in the first quarter (January-March) of the ongoing calendar year 2023, reports WealthPK. Thus, the sector-wise gross profit and net loss ratios were reported at 20.14% and 4.63%, respectively.

K-Electric Limited (KEL), the second-largest power firm with a market cap of Rs52.2 billion, posted the highest sales of Rs102 billion. The Hub Power Company Limited (HUBC) contributed the second-highest sales of Rs9.2 billion. Likewise, Nishat Power Limited (NPL) posted gross sales of Rs3.4 billion, Engro Powergen Qadirpur Limited (EPQL) Rs3.3 billion, Kohinoor Energy Limited (KOHE) Rs2.1 billion, Saif Power Limited (SPWL) Rs2 billion and Kot Addu Power Company limited (KAPCO) Rs128 million during the quarter under review.

HUBC reported the highest gross profit (GP) ratio of 58.76% in 1QCY23, followed by NPL with a GP ratio of 27.68%. KOHE and SPWL posted the third and fourth biggest GP ratios of 26.13% and 25.24%, respectively. KEL and EPQL reported GP ratios of 17.64% and 14.30%, respectively, whereas KAPCO bore a heavy gross loss of 604.82% in 1QCY23.

In terms of net profitability, KAPCO achieved the highest net profit (NP) ratio of 536.40% in 1QCY23. HUBC followed with a net profit ratio of 63.97%. NPL and KOHE posted the third and fourth highest NP ratios of 23.98% and 19.01%, respectively. EPQL declared a net profit ratio of 12.97% in 1QCY23. However, SPWL and KEL showed net losses in the period under review.

KEL's net loss of Rs 12 billion in 1QCY23 weighed heavily on the collective net profit of the power sector. SPWL’s net loss of Rs100 million had a rather negligible impact on the overall profitability of the power sector firms. HUBC reported the highest earnings per share (EPS) of Rs4.56 in 1QCY23, followed by an EPS of Rs2.45 by KOHE. The third and fourth highest EPS were posted by NPL and EPQL at Rs2.35 and Rs1.35, respectively. KAPCO reported an EPS of Rs0.78. However, SPWL and KEL posted a loss per share in the first quarter of CY23. SPWL bore a per share loss of Rs0.26 and the shareholders of KEL suffered a loss per share of Rs0.45.

Credit: Independent News Pakistan-WealthPk