K-Electric Swings to Profit as Sales Jump, Costs Ease
Posts Rs4.24b profit, rebounds from Rs39.5b loss
Utility boosts efficiency, expands grid links as revenue surges 46% despite economic headwinds
K-Electric Ltd., Pakistan’s largest private power utility, swung back to profitability in the fiscal year ended June 30, 2024, reporting a consolidated net profit of Rs4.24 billion after a staggering Rs39.48 billion loss in 2023, driven by strong revenue growth and tighter cost control, the company said Tuesday.
The profit translates into earnings of Rs0.15 per share, compared with a loss of Rs1.43 per share a year earlier. Net revenue rose 45.8% to Rs557.12 billion from Rs382.82 billion, while cost of sales eased slightly, lifting gross profit to Rs131.41 billion—more than double last year’s Rs56.02 billion. Analysts said the turnaround reflects improved operational fundamentals and financial stability.
“This is a powerful recovery,” said a Karachi-based energy analyst. “The leap from deep losses to profit underscores both revenue strength and disciplined cost management.”
Finance costs climbed to Rs56.78 billion from Rs34.57 billion due to higher interest rates, but operational efficiency offset the increase. Operating expenses plunged to Rs1.99 billion from Rs14.5 billion, while other income surged 67% to Rs20.05 billion. Cash from operations rose 29% to Rs78.32 billion, with bank balances reaching Rs9.94 billion, up from Rs7.12 billion.
While the board did not recommend a final dividend, the improved balance sheet and profit outlook are expected to bolster investor confidence. The company’s annual general meeting is scheduled for Nov. 11 in Karachi.
K-Electric acknowledged persistent challenges from Pakistan’s subdued economy, which grew just 2.51% in FY24 amid high inflation and interest rates. Tariff hikes and inflationary pressure hurt recovery ratios, which fell to 91.5% from 92.8%, while aggregate technical and commercial losses rose 1.8 percentage points. Unconsolidated profit after tax stood at Rs4.13 billion, equal to a 3.56% return on equity.
Despite the strain, K-Electric advanced major projects. The 900-megawatt Bin Qasim Power Station III lifted fleet efficiency to 49.5% and helped dispatch a record 3,550 MW. Transmission capacity expanded to 7,095 MVA with new transformers at Dhabeji-2, DHA-4 and Korangi East. Two key grid links—the 500kV KKI and 220kV Dhabeji-2—were commissioned, boosting access to national grid power to 2,000 MW, enhancing stability.
On the distribution side, the utility stepped up anti-theft measures, removing 350,000 kilograms of illegal connections and conducting 30,000 enforcement drives. Looking ahead, KE said it will expand electrification, install 50,000 low-cost meters and hold recovery camps to improve collections. The company said it remains committed to strengthening performance, executing its approved investment plan and supporting Pakistan’s energy transition.
