The listed Power Grid Company of Bangladesh Limited (PGCB) is working as a power transmission company in the country. Recently, the company has taken large amount of foreign loans for implementation of various projects.

Due to the devaluation of the rupee against the dollar, the institution is in trouble for this foreign loan. In the first quarter of the 2024-25 fiscal year (July-September), the company had to account for a loss of Tk 611 crore due to the depreciation of the taka. As a result, the company’s net loss after tax stood at Tk 256 crore despite making an operating profit.

In addition, the company’s net loss in the 2022-23 fiscal year was Tk 626.57 crore. In the previous year, the company had a net profit of Tk 121.24 crore. Similarly, the loss per share in the first quarter was Tk 2 81 paise, which was Tk 1 42 paise in the previous year.

Presently, Power Grid’s debt is Tk 52,116 crore, which has increased compared to last year. In the current fiscal year, the company’s income is Tk 848 crore, which was Tk 757 crore in the same period of the previous year. However, although the operating profit increased by Tk 458 crore, the huge loss due to depreciation has exceeded the company’s income.

Power Grid was listed on the stock market in 2006 and currently the company has an authorized capital of Tk 15000 crore, paid up capital of Tk 913 crore 80 lakh 70 thousand and reserve of Tk 104 crore 52 lakh.

The impact of the current inflation in the stock market and the depreciation of the taka against the dollar is being felt, which is making the company’s financial situation difficult. The closing price of Power Grid shares on the DSE last Thursday was Tk 39.60, while the lowest price of this share in the past one year was Tk 35 and the highest was Tk 54.70.

In this situation, the Power Grid authorities have not recommended any dividend for the fiscal year ending June 30, 2024. This financial situation of the company has become a cause of considerable concern for the stock market and investors.