CKHL
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By Sandeep Chaudhary

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

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.

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