The Dhaka Electric Supply Company (Desco) – a listed power distributor – has suffered a severe blow amid the Covid-19 pandemic as its net profit fell by around 69% during the July-March period, compared to the same period in FY2019-20.
Desco officials have cited a myriad of reasons behind the dip, but pointed out the decline in revenue from industrial and commercial customers as the primary cause, along with the jump in administrative and other expenses, and bulk electricity price hike.
The distributor's profit stood at Tk 17 crore in the nine-month period, a sharp drop from Tk 54 crore during the same period last fiscal year – when the pandemic was yet to spread across Bangladesh, reveals the company's financial statement disclosed recently.
Desco registered higher revenue from the domestic level customers as consumption and users in this category increased gradually during this time, but it was nearly not enough to offset the waning profits caused by other factors.
The distributor's overall energy sales have dropped due to the pandemic. Desco's total electricity sales were 3,891MKH during the July-March period in FY2020-21, which was 3,915KMH in the same period last year.