Peoples Power Limited Reports Revenue Stability but Sharp Decline in Profitability in Q4 FY 2024/25

Published on August 22, 2025

Peoples Power Limited (PPL) has published its audited financial results for the fourth quarter of FY 2024/25, revealing steady revenue but a significant erosion in profitability. The company generated total revenue of Rs. 96.34 million, marking a marginal 1.52% growth year-on-year compared to Rs. 94.92 million in Q4 of 2023/24. However, sequential performance remained weak, with revenue almost flat compared to Q3 and still below Q4 of the prior year, which had reached Rs. 107.79 million.

The gross profit for Q4 stood at Rs. 73.95 million, translating into a margin of 76.76%, noticeably lower than the 85–87% range seen in the previous three quarters. This indicates rising cost pressures, eroding operating efficiency despite maintaining stable revenues.

The most concerning trend was in net income, which fell drastically to just Rs. 3.32 million in Q4, compared to Rs. 7.80 million in Q3 and a much stronger Rs. 30.21 million in Q4 of last year. The net profit margin shrank to only 3.45%, a steep drop from 28.03% in the same quarter last year and 11.20% in Q3.

On an annualized basis, EPS slipped to Rs. 0.52, compared to Rs. 1.64 in Q3 and Rs. 4.78 in Q4 of last year. This deterioration reflects the earnings pressure directly affecting shareholder returns. Consequently, the reported PE ratio surged to 734.74, reflecting extremely high valuation relative to earnings and underlining investor expectations versus weak fundamentals.

The company’s return ratios also weakened. Return on Assets (ROA) dropped to 0.35% in Q4, from 3.10% a year ago, while Return on Equity (ROE) fell to 0.52%, down from 4.90% in the same period last year. These figures highlight reduced efficiency in generating returns from both assets and equity capital.

From a balance sheet perspective, the book value per share stood at Rs. 97.31, while the market value per share was significantly higher at Rs. 385.49. This gap indicates that despite weak profitability, the stock continues to trade at a strong premium, showing investor confidence in PPL’s long-term hydroelectric growth potential.

Dividend per share has not been declared for this quarter, in line with the company’s declining profitability. Investors will likely remain cautious, watching for operational improvements and cost optimization in the coming fiscal year.

Prabhu Insurance Q4: Stable Revenue, Declining Profitability, and Strong Valuation Premium

Prabhu Insurance (PRIN) has published its audited Q4 2024/25 results, showing weaker performance compared to last year. The company’s total revenue fell by 25.70% YoY to Rs. 962.10 million, while net income dropped sharply by 56.8% to Rs. 211.96 million. Profit margins compressed, with net margin declining to 22.03% from 48.47% a year ago. Similarly, returns weakened as ROA slipped to 3.24% and ROE to 6.38%, both well below last year’s levels. Earnings per share also fell significantly to Rs. 14.70 from Rs. 34.05, while the P/E ratio jumped to 61.89, indicating the stock remains highly valued despite reduced profitability. On the balance sheet side, book value per share improved to Rs. 325.91, and the market value per share closed at Rs. 910, showing that PRIN trades at nearly 2.8 times its book value. Operationally, the company issued 123,873 policies, almost flat YoY, while renewed policies rose 27.95%. Claims paid fell by 24.96%, but outstanding claims increased, raising some concerns. Although PRIN had distributed Rs. 18.95 per share in dividend earlier, the steep decline in profitability could pressure future payouts. Overall, the insurer shows stable topline operations but is facing profitability and efficiency challenges despite maintaining high market valuations.

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Hathway Investment Nepal Q4: Revenue Jumps Sharply, Margins Stable, But Valuation Stretched

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NESDO Laghubitta Q4: Heavy NPL Pressure Drags Earnings into Red Despite Strong Revenue Base

NESDO Sambridha Laghubitta reported Q4 revenue of Rs. 530.40 million (-33.31% YoY) but slipped into a net loss of Rs. 10.09 million, compared to Rs. 67.86 million profit last year. High NPLs at 21.06% and a stretched CD ratio of 167.84% have severely impacted earnings. ROA and ROE turned negative at -0.24% and -1.23%, while EPS fell to -3.47. Despite financial stress, the stock trades at Rs. 1,716.78, showing market optimism, though no dividend was declared this year

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Standard Chartered Nepal Q4 Results: Stable Profitability Despite Revenue Dip

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Prime Commercial Bank Q4 Results: Strong Profitability Despite Revenue Slowdown

Prime Commercial Bank (PCBL) reported Q4 FY 2024/25 revenue of Rs. 23.53 billion (-9.21% YoY) but improved profitability with net income of Rs. 4.02 billion (+6.6% YoY). Net profit margin strengthened to 17.10%. EPS rose to Rs. 20.74, while ROE stood at 12.55%. NPLs increased to 5.56%, but cost of funds fell to 5.21%, supporting better margins. Market value closed at Rs. 276.31 per share.

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