By Sandeep Chaudhary
Mandu Hydropower Q4 Results: Stable Revenue but Sharp Drop in Profitability
Mandu Hydropower Limited (MANDU) has published its audited financial results for the fourth quarter of FY 2024/25, reflecting stable revenues but a significant decline in profitability compared to the previous year.
The company reported total revenue of Rs. 204.74 million in Q4, the same figure consistently recorded in all four quarters of the fiscal year. Compared to Rs. 734.13 million in Q4 of 2023/24, this marks a steep year-on-year decline of over 72%. This contraction suggests weaker energy generation or lower sales capacity during the fiscal year.
The gross profit stood at Rs. 172.48 million, with a margin of 84.24%, slightly stronger than Q3’s 82.79% but below the exceptionally high 92–95% margins achieved in earlier quarters. Despite stable revenues, cost structures appear to have pressured margins downward over the year.
Net earnings showed a dramatic decline. The company’s net income was Rs. 58.64 million in Q4, compared to Rs. 269.03 million in Q4 of the prior year and well below the highs of Rs. 150.26 million in Q3 and Rs. 162.08 million in Q2. The net profit margin dropped to 28.64%, down from 73.39% in Q3 and 79.17% in Q2, highlighting reduced efficiency and rising expenses.
Return indicators weakened significantly. Return on Assets (ROA) fell to 1.44%, down from 6.96% in the same quarter last year, while Return on Equity (ROE) dropped to 2.98%, compared to 14.31% in Q4 of 2023/24. This reflects a substantial erosion of profitability in relation to both assets and equity capital.
Earnings per share also contracted. EPS (annualized) stood at Rs. 4.30, compared to Rs. 19.73 in Q4 of last year, and far below the Rs. 23.77–30.61 levels seen earlier in FY 2024/25. The reported PE ratio climbed to 210.11, showing the stock is trading at a steep valuation relative to its earnings.
From a balance sheet perspective, the book value per share was Rs. 139.32, while the market value per share traded at Rs. 903.53, more than six times its book value. This highlights strong investor sentiment, even as fundamentals weaken.
MANDU had declared a dividend per share of Rs. 12.00, reflecting its commitment to shareholder returns despite falling profitability.
