Api Power Q4 Results: Strong Revenue Growth with Steady Profitability Despite Margin Pressure

Api Power Company Ltd. (API) has published its audited financial results for the fourth quarter of FY 2024/25, showing robust revenue growth and solid profitability, though net margins eased slightly compared to last year.

The company posted a total revenue of Rs. 1.65 billion in Q4, marking a 53.01% year-on-year increase compared to Rs. 1.25 billion in Q4 of FY 2023/24. Revenue also improved sequentially from Rs. 1.20 billion in Q3, reflecting consistent operational growth.

The gross profit stood at Rs. 1.37 billion, with a gross margin of 82.88%, slightly below last year’s 84.42% but in line with sector peers. This underscores API’s efficient cost management and strong revenue conversion.

Net income came in at Rs. 427.66 million, lower than Rs. 456.58 million in Q4 last year but an improvement over earlier quarters of FY 2024/25. The net margin stood at 25.90%, a decrease from 36.57% a year ago, showing some pressure on bottom-line profitability despite higher revenue.

Return indicators softened during the year. Return on Assets (ROA) was 3.40%, down from 4.17% last year, while Return on Equity (ROE) slipped to 6.49%, compared to 8.01% in Q4 of FY 2023/24.

On a per-share basis, EPS (annualized) was reported at Rs. 7.04, compared to Rs. 7.89 last year, showing a slight decline in earnings per share despite top-line growth. The reported PE ratio stood at 42.04, reflecting a relatively high valuation for the sector.

From a balance sheet perspective, the book value per share stood at Rs. 111.07, while the market value per share traded at Rs. 295.92, nearly 2.7 times book value, indicating strong investor confidence in the company’s long-term growth.

Dividend details for FY 2024/25 are yet to be announced. Last year, API distributed Rs. 5.26 per share.