Sahas Urja Limited has posted a massive 51.84 percent growth in its net profit for the fourth quarter of the fiscal year 2082/83, driven by higher electricity sales and lower expenses.
Sahas Urja Limited has published its un-audited financial report of fourth quarter of fiscal year 2082/83. According to report, net profit of the company has jumped by 51.84 percent to reach Rs. 1 arba 35 crore 91 lakh. In the previous year, company made Rs. 89 crore 51 lakh net profit.
The major reason for this profit jump is because of increase in electricity sales income, heavy drop in administrative expenses, and reduction in finance costs like interest payments.
A Look into Income and Expenses
By the fourth quarter, electricity sales income of Sahas Urja went up by 7.42 percent to hit Rs. 2 arba 84 crore 45 lakh. Similarly, its operating profit also grew by 14.80 percent to Rs. 1 arba 97 crore 58 lakh. However, direct expenses increased by 21.28 percent to Rs. 22 crore 83 lakh.
On positive side, company managed to cut down its finance costs by 27.99 percent to Rs. 57 crore 76 lakh. Its administrative expenses also dropped hugely by 54.69 percent to just Rs. 3 crore 55 lakh, which helped to boost overall profit.
Capital, Reserves, and EPS
Currently, paid-up capital of Sahas Urja is Rs. 4 arba 57 crore 38 lakh and it has Rs. 3 arba 68 crore 3 lakh in its reserve fund. The company also reduced its medium and long-term loans from Rs. 9 arba 17 crore to Rs. 8 arba 86 crore.
Coming to the stock indicators, annualized Earnings Per Share (EPS) of company has increased by Rs. 6.04 to reach Rs. 29.72. The net worth per share stands at Rs. 180.58 and the PE ratio is recorded at 21.40 times.
Future Projects and Right Shares
Sahas Urja is regularly generating power from its 86 MW Solukhola (Dudh koshi) Hydropower project and selling it to Nepal Electricity Authority. Since it is a Run-of-River project, there are minor changes in power generation depending on weather and water levels. But the management says they are technically fully ready.
Even more excitingly, Sahas Urja is working fast on its 341 MW Budhigandaki Hydropower Project through its subsidiary company Times Energy Private Limited. The design of this project is in final stage, and staff mobilization and housing works are almost done.
Also, the annual general meeting of company held on Manshir 24, 2082 had approved to issue 1:1 right shares. This proposal has already got green signal from Electricity Regulatory Commission and is now waiting for approval from Securities Board of Nepal (SEBON). The company also mentioned that there are no active legal cases against them and corporate governance is strictly followed.
AI Disclaimer: This article was originally published on https://bajarkochirfar.com. It has been translated with the help of AI. For the best understanding and accurate facts, we recommend reading the original Nepali version.
