Desco returns to profit after three years, recommends 5% cash dividend

Under the recommendation, shareholders will receive Tk0.50 for each share held, with the total dividend payout amounting to Tk6.42 crore.

Dhaka Electric Supply Company (Desco) returned to profitability in FY2025-26 after three years of losses, which had been exacerbated by currency volatility and foreign exchange losses.

The state-owned power distributor posted a profit of Tk40.15 crore, with earnings per share of Tk1.01, driven by higher revenue and gains from foreign currency movements, according to a disclosure published on the stock exchanges today (13 October).

The company also recommended a 5% cash dividend for shareholders for FY26, after skipping dividend payments for two consecutive years due to heavy losses.

Under the recommendation, shareholders will receive Tk0.50 for each share held, with the total dividend payout amounting to Tk6.42 crore.

This marks a major turnaround for the power distributor, which had incurred a heavy loss of Tk125 crore in FY25.

Following the declaration of dividend and annual corporate declaration, Desco’s share price declined by 6.75% to Tk23.50 each at the Dhaka Stock Exchange.

In the three years, it had incurred a total Tk1,172 crore losses since FY2022-23 to FY2024-25.

Due to the losses, it had skipped dividend payouts for FY24-25, according to its financial statements.

According to disclosure, Desco managed to break its three-year streak of losses due to several positive operational and financial developments.

It said, this positive result was mainly attributed to higher yields from increased sales revenue by enhancing operational activities, interest income and a positive swing in foreign exchange operations, shifting from a foreign currency exchange loss in the prior period to a foreign exchange gain.

It previously faced blow due to heavy loss for foreign currency fluctuation for paying its foreign debts.

The net operating cash flow per share stood at Tk17.99, and the net asset value per share at Tk39.23, which was Tk15.93 and Tk35.33 respectively for the previous fiscal year.

On the capital market front, Desco’s current market capitalisation stands atTk1,001 crore.

In a previous disclosure, it said the company received consent from the Bangladesh Securities and Exchange Commission for issuance of 4.59 crore Irredeemable Non-Cumulative Preference Shares of Tk10 each amounting total Tk45.90 crore. The shares to be issued in favour of the Government of Bangladesh, represented by the Secretary, Power Division, Ministry of Power, Energy and Mineral Resources, against share money deposits.

Source: The Business Standard