State-run Dhaka Electric Supply Company Ltd (Desco) has faced a financial setback in the fiscal year 2022-23, marking its first loss in two decades.
The company, responsible for electricity distribution in Dhaka’s western and northeastern areas, revealed a loss of Tk 5.41 billion in the fiscal year ending in June 2023, as stated in its recent annual report.
This is a significant shift from the Tk 630 million profit it had posted the previous year.
The company’s Earnings per Share (EPS) plunged into negative territory at Tk 13.61 for the year ending on June 30 this year.
This marks the first time since the financial year 2001-02 that the electricity supplier has reported a loss when it faced a loss of Tk 53 million.
The company made this announcement in a disclosure on the Dhaka Stock Exchange website, emphasizing that EPS saw a sharp decline due to foreign exchange fluctuations and a disproportionate rise in bulk and retail electricity prices.
Foreign exchange fluctuations accounted for Tk 428 crore of the company’s losses, necessitating more spending on foreign currency due to the local currency’s depreciation. Desco’s losses from foreign currency fluctuations had stood at Tk 840 million in the previous financial year.
According to the annual report, the energy purchase cost for Desco increased by 21%, while sales only grew by 14% in the fiscal year 2022-23.
The company’s overall distribution revenue plummeted by 48% year-on-year, from Tk 520 crore in the previous year to Tk 2.68 billion in the fiscal year of 2022-23.
Established in September 1998, Desco served 1.2 million clients as of June this year.
