{"id":4543,"date":"2023-09-16T04:40:06","date_gmt":"2023-09-16T04:40:06","guid":{"rendered":"https:\/\/news.pakistaninewspaperlist.com\/ke-incurred-rs-31b-losses-in-fy2022-23\/"},"modified":"2023-09-16T04:40:06","modified_gmt":"2023-09-16T04:40:06","slug":"ke-incurred-rs-31b-losses-in-fy2022-23","status":"publish","type":"post","link":"https:\/\/pakistaninewspaperlist.com\/news\/ke-incurred-rs-31b-losses-in-fy2022-23\/","title":{"rendered":"KE incurred Rs 31b losses in FY2022-23"},"content":{"rendered":"
\n
\n

KARACHI: The Chief Executive Officer (CEO) of K-Electric Moonis Alvi said that the power distribution authority incurred Rs 31 billion in losses in Fiscal Year 2022-23, ARY News reported.<\/strong><\/p>\n

\n

FY23 was a tough year. Myriad challenging sociopolitical & macroeconomic factors affected multiple sectors including KE. Inflation,policy rate hikes,PKR devaluation & economic contraction impacted operations. Decreased economic activity also reduced units sent out by 7.3%. (1\/7) pic.twitter.com\/crzUYXJS1v<\/a><\/p>\n

\u2014 Moonis Alvi (@alvimoonis) September 15, 2023<\/a><\/p>\n<\/blockquote>\n

The recently concluded fiscal year was significantly influenced by challenging sociopolitical and macroeconomic factors that have had a cascading impact on multiple sectors including KE.<\/p>\n

Surging inflation, policy rate hikes, rupee devaluation and a contraction in economic activity have cast a significant influence on the company\u2019s operations and overall profitability.<\/p>\n

Compared with FY22, KE has observed a 7.3% reduction in units sent out due to reduced economic activity. Inflationary pressures and government-mandated increases in the prices of electricity have also impacted customers\u2019 propensity to pay, decreasing KE\u2019s recovery ratio from 96.7% to 92.8% between FY22 and FY23, resulting in an increase in impairment loss against doubtful debts.<\/p>\n

An additional burden is being placed by surging finance cost mainly on account of increase in effective rate of borrowing. The Company operates under regulated tariff and as per applicable Multi-Year Tariff, no adjustment is provided to the Company in tariff for changes in sent-out and policy rates.<\/p>\n

The aforementioned factors resulted in net loss for the year of PKR 30.9 billion compared with the net profit of PKR 8.5 billion for FY22.<\/p>\n<\/div>\n<\/div>\n