Sunday 1st August 2021

Twenty three Hydropower Companies Manage to Earn Net Profit of Rs 2.33 Billion


Published on : 11 September, 2020 6:53 am

Kathmandu: Of the 33 hydropower companies listed on the Nepal Stock Exchange (NEPSE), only 23 have so far released their unrevised financial statements up to the fourth quarter of the last fiscal year.

Over the same span, 23 hydropower companies earned a combined net profit of Rs 2.33 billion. In the same way, these firms received a total of Rs 5.33 billion from the sales of electricity. The gross paid-up capital of 23 hydropower companies is Rs. 46.72 billion and the reserve fund is Rs. 8.45 billion.

Among the 23 hydropower companies which have released their financial statements, Chilime Hydropower Company Limited is in the top spot in terms of profit. During the time, Chilme was able to make a net profit of Rs. 751.4 million. Out of 23 companies, the net profit of 6 companies is zero, which means that 6 companies have suffered losses. The largest loss was suffered by Upper Tamakoshi Hydropower.

As of mid-July, Chilime Hydropower had earned Rs 1.14 billion. Rarang Hydropower has the lowest revenue from electricity sales. The company earned Rs 6.8 million from the selling of electricity. Five out of 23 hydropower companies have not yet produced electricity.

Upper Tamakoshi has the highest paid-up capital among these firms. The paid-up capital of the company is Rs. 10.59 billion. However, the reserve fund of the company is the lowest. Butwal Power has the highest reserve fund of the 23 hydropower companies. The company has invested Rs 4.53 billion in its reserve fund.

The earnings per share (EPS) of six companies remained negative as of mid-July. Butwal Power Company has the highest EPS rating. EPS of the company stood at Rs 26.93 as of mid-July. Himalayan Electricity has the lowest EPS rating.

Of these companies, Butwal Power Company has the highest net worth per share. As of mid-July, the net worth of the company is Rs 268.96. The lowest net worth is of Divyashwori Hydropower.

Himalayan Energy has the highest price-to-earnings ratio of the last trading price on 8 September. The price-to-earnings ratio of the firm stood at 232.56 percent. According to the price of the day, the PE ratio of 6 companies is optimistic and that of 9 companies is less than 20.

Synergy Power has the highest ROE (Return on Equity) value. As of mid-July, the company’s ROE was 14.86 percent.

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