United Power posts 127% profit growth in first quarter

United Power Generation and Distribution Company Ltd (UPGDCL) posted a massive rise in profit in the first quarter, driven by higher tariffs and stable forex rates.

Its quarterly profit surged by a robust 127 percent year-on-year to Tk 418.87 crore for the July-September quarter of fiscal 2024-25.

This growth is attributed to increased bulk electricity tariffs and stable foreign exchange rates, the company said in its unaudited financial statements.

The blockbuster result drove shares of UPGDCL 9.98 percent higher to Tk 141.1 at the Dhaka Stock Exchange (DSE) yesterday.

The company's earnings per share for the quarter rose significantly to Tk 7.13, from Tk 3.12 in the same period last year, according to a disclosure on the website of the DSE.

However, the company's consolidated net operating cash flow per share fell to Tk 1.85 from Tk 5.19 as higher interest rates and delays in receivables from the Bangladesh Power Development Board strained cash flows.

During this period, UPGDCL generated Tk 1,147.5 crore in consolidated revenue, with total collections amounting to Tk 592.8 crore.

The company disbursed Tk 450.8 crore to the suppliers despite cash flow pressures to ensure seamless plant operations.