Doreen Power sees profits fall for higher foreign currency cost

Profits of Doreen Power Generations and Systems Ltd fell 61 percent year-on-year to Tk 64.8 crore in fiscal 2022-23, according to a disclosure on the Dhaka Stock Exchange (DSE) today.

The listed private power producer registered lower profits as its subsidiaries suffered significant losses in foreign currency transactions resulting from taka's devaluation against the US dollar, it said.

As such, Doreen power reported consolidated earnings per share (EPS) of Tk 3.56 for the preceding fiscal year, down from Tk 9.21 in fiscal 2021-22.

The company's EPS decreased as it incurred significant losses in foreign currency transactions made by its subsidiaries amid the severe devaluation of taka against the US dollar, the disclosure added.

Muhammad Amzad Shakil, company secretary of Doreen Power, said their finance cost increased to Tk 280 crore in fiscal 2022-23 from Tk 111 crore the year prior due devaluation of the local currency.

However, he hopes they will be able to recover the losses if there is no massive depreciation of taka against the US dollar in the future.

The company said its consolidated net operating cash flow per share (NOCFPS) increased to Tk 50.47 in fiscal year 2022-23 from Tk 47.46 the previous year.

The NOCFPS increased because of significant recovery of receivables from the Bangladesh Power Development Board and reduced payments to suppliers for efficient inventory management, it added.