High expenses have eaten away at the company's net profits
The state-run Power Grid Company of Bangladesh (PGCB) witnessed an erosion of 30% in earnings in the third quarter amid increased transmission expenses.
PGCB’s net profit stood at Tk59.1 crore during the January-March 2020 quarter as compared to Tk84.1 crore during the same period in the previous year.
The company published its financial report on Tuesday.
The PGCB bagged revenue of Tk413.8 crore during the quarter while transmission expenses stood at Tk255.7 crore.
The expenses were 61.8% of the revenue in the latest quarter, which was 50.5% during the same quarter last year.
High expenses have eaten away at the company's net profits despite witnessing growth in the revenue of transmission/wheeling charges in the January-March quarter.
However, the company reported a growth of 11.5% in its 9-month earnings, thanks to increased interest income from fixed deposits.
The company's stock price last traded at Tk40.4 per share, as on March 25, 2020. Earnings per share (EPS) during the January-March quarter stood at Tk0.83.
Power Grid distributed a cash dividend of 20% in the previous year ending on June 30, 2019, according to the website of Dhaka Stock Exchange.
As on February 29, 2020, directors and sponsors own 84.64% of the company while 12.25% by institutes, 0.16% by foreigners, and 2.95% by the general public.