KE’s financial results for Q1 FY 23 showed a considerable decline owing to the impact of multiple macroeconomic and geopolitical factors. EBITDA decreased from Rs. 11.8 billion to a loss of Rs. 2.6 billion. Gross profitability also decreased while the units dispatched to Karachi shrank by 8.9%.
KE’s cashflows remain volatile and sensitive to the overall national and global economic situation. The utility has been raising awareness on these challenges and remains in touch with relevant stakeholders. High prices of fuel and non-availability of local gas are among the reasons cited for the poor financial performance.
The KE Board remains active and the company’s internal position is stable. Company disclosure to the PSX on Q1 results presented a positive outlook despite the tumultuous outcome. KE stated that they are preparing for renewal of tariff for next control period, with aim to obtain sustainable “cost reflective tariff”.
KE’s long-awaited BQPS-III is reported to be in advanced stages of commissioning expected to be integrated into network by end of 2022. Further 1200 MW of renewable energy are also planned to be added to the system to make cheaper electricity available for customers.
KE’s T&D losses have decreased from 17.0% in Q1 FY22 to 15.8% in same period of current fiscal. Company has provided 40,000 low-cost meters to regularize their electricity consumption. The company also helped people in flood affected areas through donations from employees of 2.7 million.