August 11, Kathmandu.
Sanigad Hydro Limited’s profit increased by nearly four times by the fourth quarter of the last fiscal year, following the company’s success in significantly reducing financial expenses.
According to the financial statements published by the company, net profit increased by 390.15 percent to NRs 26.58 crore during the review period. In the same period of the previous fiscal year, the company had earned a net profit of only NRs 5.42 crore.
The main reason for the profit growth is a significant decline in the company’s financial expenses. Financial expenses, which stood at NRs 57.51 crore by the fourth quarter of the previous fiscal year, decreased to NRs 40.47 crore during the review period. This means the company succeeded in saving approximately NRs 17 crore in financial expenses in one year.
Revenue from electricity sales has also increased moderately. The company’s electricity sales revenue increased by 3.69 percent to NRs 1.11 billion. Additionally, it earned NRs 1.70 lakh in other income.
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The company has also shown progress in controlling operating expenses. Other operating expenses, which were NRs 2.51 crore in the previous fiscal year, decreased to NRs 2.38 crore. With the increase in profit, the company’s retained earnings (reserves) have also strengthened. Reserves, which stood at NRs 9.12 crore last year, have increased to NRs 33.44 crore.
The company, with a paid-up capital of NRs 2.85 billion, saw its Earnings Per Share (EPS) increase from NRs 2.72 to NRs 9.33. Similarly, Net Worth Per Share increased from NRs 104.57 to NRs 111.80.
With financial expenses decreasing and electricity sales revenue steadily increasing, the company’s financial condition appears to be further strengthening. It is analyzed that the impact of reduced borrowing costs is directly reflected in profit and earnings per share.
For More: Sanigad Hydro EPS 9.33
