Karachi Electric Limited (KEL) announced its 3QFY15 result where the company earned profit after tax of PKR 3.0bn (EPS: PKR 0.11) massively down 70 percent QoQ when compared with PKR 10.1bn (EPS: PKR 0.37) posted in the preceding quarter. This is due to higher effective taxation on account of lower deferred tax asset (DTA) compared to massive PKR 5bn booked in last quarter, said market analysts.
On 9MFY15 basis, KEL posted 160 percent higher YoY profitability to PKR 16.3bn (EPS: PKR 0.59). Net revenue jumped by 1 percent YoY to PKR 139bn mainly due to 9 percent YoY higher units billed during the period. The company showed 800ppt improvement in gross margins to 23 percent during 9MFY15, when compared with GMs of 15 percent recorded during same period last year.
The betterment in margins mainly attributable to reduction in T&D losses to 23 percent during 9MFY15 as compared to 26 percent posted same period last year, analysts said. Furthermore, higher efficient generation (BQPS-II) and 33 percent YoY lower average FO prices during the period also supported the gross profit which jumped 51 percent YoY to PKR 31.7bn.
Other income dropped by 3 percent YoY to PKR 4.5bn during 9MFY15 amid lower amount of late payment surcharge from public sectors consumers during the period. Financial charges dropped by 7 percent YoY on account of early retirement of long term debt. The company has booked in deferred tax amounting PKR 5.5bn (amounting PKR 0.19/share) during 9MFY15.
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