STAFF REPORTER
KARACHI The Board of Directors (BoD) of K-Electric (KE) Limited in its meeting held on April, 09, 2020 at the KE Head Office, approved the Company’s financial results for the year ended June 30, 2019. During the reporting period, around PKR 40 billion was invested across the Company’s power value chain. KE remains committed to making further investments across the power value chain despite mounting challenges such as growing government receivables as well as the economic slowdown because of the COVID-19 outbreak. The KE Board, while appreciating improvements in certain key operational indicators such as sent-out growth and decrease in Transmission and Distribution (T&D) losses, has shown concerns over Company’s negative operating cash flow, increased finance cost, enhancedbank borrowings and distressed working capital situation due to accumulation of government receivables. This, coupled with exchange losses due to significant devaluation of PKR during FY19, has impacted profit before tax of the company from PKR 13.7 billion to PKR 8.8 billion. The Board, in view of the dire cash flow situation of the Company posing a serious threat to operational sustainability and its ability to make future investments, has urged Federal and Provincial Governments and their entities to release outstanding dues at the earliest, which would enable the Company to ensure reliable power supply to the economic hub of the country and to execute its future investment plan on a timely basis. As it is improvements in financial indicators were driven in part through efficiency gains by way of reduced T&D losses (from 20.4% in FY 2018 to 19.1% in FY 2019), along with deferred tax adjustment.
