Desco losses Tk125cr in FY25

Staff Reporter:

Dhaka Electric Supply Company (Desco) has posted a loss of Tk125 crore for fiscal year 2024–25 (FY25), as higher power purchase costs and operational inefficiencies weighed heavily on the state-run utility’s earnings.

In response, the company’s board has decided not to declare any dividend for shareholders this year.

Following the disclosure, Desco’s share price dropped 4.59 percent to Tk20.80 in Sunday’s opening session at the Dhaka Stock Exchange (DSE).

The company’s official filing confirmed that the Board of Directors recommended no dividend for the year ending 30 June 2025.

Desco’s Annual General Meeting (AGM) has been scheduled for 17 January 2026, with the record date fixed for 20 November 2025.

For FY25, the power distributor reported a loss per share of Tk3.15, a net asset value (NAV) per share of Tk35.33, and a net operating cash flow per share (NOCFPS) of Tk15.93.

Industry insiders attribute the losses to several factors, including increased electricity purchase prices from the Bangladesh Power Development Board (BPDB), rising transmission losses, and growing system maintenance costs.

Additionally, delays in adjusting retail tariffs and reduced government subsidies have further strained Desco’s financial health.

The company, which supplies electricity to the northern and western zones of Dhaka city, has been grappling with declining profitability over recent years despite growing power demand.
In FY24, Desco had posted marginal profits, but a sharp rise in input costs and currency volatility pushed it into the red in FY25.

Analysts say the absence of dividends may dampen investor sentiment in the short term, but strong operating cash flow and steady asset value suggest the company still retains financial stability.

They also noted that any future adjustment in retail electricity tariffs or government policy support could help the utility recover profitability in the coming fiscal year.