Liberty Energy Q4 Results: Revenue Strong but Heavy Losses Persist

Liberty Energy Company Limited (LEC) has published its audited financial results for the fourth quarter of FY 2024/25, showing strong revenue but continued struggles with profitability. The company reported a total revenue of Rs. 596.91 million in Q4, down 22.98% year-on-year from Rs. 547.61 million in Q4 of the previous year. Sequentially, revenue improved compared to Q3’s Rs. 471.24 million, reflecting better electricity sales during the quarter.

LEC recorded a gross profit of Rs. 532.63 million, with a strong gross margin of 89.23%, consistent with past performance and indicating efficient operations at the generation level. However, despite the robust gross margins, the company remained in the red due to financing and other non-operating expenses.

The company posted a net loss of Rs. 133.24 million in Q4, which was higher than Q3’s Rs. 91.89 million but an improvement compared to a deeper loss of Rs. 273.09 million in Q4 of last year. The net profit margin stood at -22.32%, showing that losses continue to eat into revenue despite efficient power generation.

Return indicators remained negative, reflecting weak bottom-line performance. Return on Assets (ROA) was reported at -2.22%, slightly worse than Q3 (-2.15%). Return on Equity (ROE) came in at -10.43%, though improved compared to -27.65% a year ago.

On a per-share basis, EPS (annualized) stood at -5.92, compared to -5.45 in Q3 and -18.21 in Q4 of 2023/24. The reported PE ratio remained negative at -36.32, reflecting the company’s loss-making position.

From a balance sheet perspective, the book value per share stood at Rs. 70.52, while the market value per share traded at Rs. 215.05, about three times book value. This shows that investors continue to assign a premium to LEC shares, betting on its long-term hydropower potential despite current losses.

As expected, no dividend has been declared for FY 2024/25, given the sustained losses.