The K-Electric, electric utility provider Board of Directors (BoD) has recommended to its shareholders to approve investments of Rs 275 million in KE Venture Company Private Limited (KEVCL).

The creation of KEVCL is part of the diversification strategy of the Company to get into allied businesses and create new revenue streams for KE. KEVCL will be a subsidiary of KE and is intended to be the holding company for all such investments to be made by KE.

These investments would include but are not limited to, initiatives in the renewable energy space. The current initiatives planned are in the utility-scale generation landscape and the distributed generation market.

Profits decline for KE

K-Electric, the sole electric utility provider of Karachi posted a net profit of Rs 3.591 billion for the nine-month period ended in March 31, 2020.

The company’s net profit declined by 37 percent as compared to the same period last year, which stood at Rs 5.702bn on account of high taxation which increased by 144pc YoY. Meanwhile, the company posted Rs0.13 in Earning Per Share (EPS) for the nine-month period ended in March 2020, as compared to Rs 0.21 EPS posted in the same period last year.