A COMPARATIVE ANALYSIS OF FINANCIAL PERFORMANCE OF POWER SECTOR COMPANIES IN PAKISTAN

Abstract

The present study examined and analyzed the financial performance of selected Government owned and public limited companies in the power sector in Pakistan using annual data for a period ranging from 2009 to 2019. The study was based on secondary data from secondary sources such as annual reports, The State Bank of Pakistan and Pakistan Stock Exchange. Ratio analysis, ANOVA techniques have been be used to measure the financial performance and comparison between these companies. The financial statements of these companies have been analyzed to evaluate the financial health of these companies. The study has been conducted by using key 
financial performance indicators such as ROA, ROE, Gross Profit Ratio, Net Profit Ratio, Current Ratio etc. of each company individually and then take ten years average data for comparison purpose. The study highlight the best performing companies in the power sector during the last ten years. The study concluded that out of ten Government owned power sector companies the companies having less recovery from receivables, abnormal high losses and theft of electricity are worst performing during the last decade. On the other hand the companies particularly having better recovery position, acceptable losses and theft of electricity at minimum level have performed well. There are many reasons for decline of power sector. The companies which are located in Sindh, KPK and Balochistan provinces have problems in recovering their outstanding amount from consumers. The public limited companies on the other hand are comparatively better as they are not facing severe problems of theft of electricity, less recovery from receivables or losses. Future research should be improved by widening the scope by taking other power sector companies.