Desco Faces Tk195 Crore Loss

Industry: Energy & Power, Power, Stock Market
Company: Dhaka Electric Supply Company Limited (DESCO)
Company Intelligence Tag: Business Insights

During the first half of the fiscal year 2023–24, state-owned Dhaka Electric Supply Company (Desco) faced financial challenges, reporting a substantial loss of Tk195 crore. The bulk tariff, at which Desco buys electricity, increased by 28.08%, while the retail tariff, at which it sells electricity, rose by only 15.76%, contributing to the losses.

Despite the financial challenges, Desco achieved a remarkable 25% growth in revenue, reaching Tk3,335 crore in the July-December period of FY24, compared to Tk2,656 crore in the same period the previous year. The company attributes its previous fiscal year’s loss of Tk541 crore to the depreciation of the taka against the dollar and losses in the difference between the purchase and sale prices of electricity. Desco recommended a 10% cash dividend for FY23, despite the substantial losses.

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