Chirkhwa Hydropower Limited (CKHL) Swings to Q4 Loss Despite Strong Revenue Growth

Chirkhwa Hydropower Limited (CKHL) has published its audited Q4 results for FY 2024/25, reflecting strong revenue expansion but a swing back to net losses due to rising costs and weak profitability management.

The company posted total revenue of Rs. 118.46 million, a sharp jump compared to Rs. 11.31 million in Q4 2023/24, showing rapid growth in energy sales and operations. On a sequential basis, revenues rose significantly each quarter, highlighting strong operational scaling.

Gross profit stood at Rs. 97.94 million, delivering a high margin of 82.68%, though slightly lower than earlier quarters’ 85%+ levels. Despite healthy gross margins, the bottom line disappointed: CKHL reported a net loss of Rs. 5.43 million in Q4, compared to a profit of Rs. 13.25 million in Q1 and Rs. 11.71 million in Q2. The net margin stood at -4.59%, marking a reversal from earlier profitability.

From a shareholder perspective, EPS (annualized) fell to -Rs. 1.36, compared to Rs. 13.25 in Q1 and Rs. 5.86 in Q2. The PE ratio turned negative (-487.17), reflecting weak earnings performance. Book Value per Share decreased to Rs. 91.08, compared to Rs. 98.17 a year earlier. The company’s stock, however, remained elevated in the market, closing at Rs. 662.09 per share, up from Rs. 606.70 last year.

Financial Indicators

• Return on Assets (ROA TTM) dropped to -0.52%, reversing from positive levels earlier in the year.

• Return on Equity (ROE TTM) also turned negative at -1.41%, compared to 2.63% in Q1.

• Despite strong gross margins, CKHL’s profitability continues to fluctuate due to high financing costs, rising expenses, and irregular income streams.