Rapti Hydro and General Construction Limited (RHGCL) Q4 Results: Revenue Stable but Losses Deepen

Rapti Hydro and General Construction Limited (RHGCL) has published its audited financial results for the fourth quarter of FY 2024/25, showing stable revenue but sustained bottom-line losses.

The company reported a total revenue of Rs. 100.41 million in Q4, down from Rs. 107.82 million in the same quarter last year (a YoY drop of 6.87%). Sequentially, revenue was slightly higher than Q3’s Rs. 91.79 million but remained far below historical highs, indicating slower growth momentum.

The gross profit stood at Rs. 76.90 million, with a gross margin of 76.58%. This is weaker than Q3’s 83.21% and Q2’s 84.45%, but still higher than Q4 of the previous year (67.26%). While the company remains operationally efficient, rising expenses continue to erode profitability.

Net income remained negative. RHGCL posted a net loss of Rs. -73.74 million in Q4, deeper than Q3’s loss of Rs. -37.15 million and wider than last year’s loss of Rs. -64.94 million. The net profit margin dropped to -73.44%, compared to -40.48% in Q3 and -60.23% a year earlier, showing growing financial strain.

The company’s return indicators also highlight weak financial health. Return on Assets (ROA) declined to -4.42%, from -2.27% in Q3, while Return on Equity (ROE) slipped to -11.47%, compared to -6.25% in the previous quarter. Both remain firmly negative, reflecting continued shareholder value erosion.

Per-share earnings worsened. EPS (annualized) stood at -6.38, an improvement from -10.60 last year but weaker than -0.79 in Q2. The reported PE ratio was negative at -53.98, confirming the loss-making position.

From a balance sheet perspective, the book value per share stood at Rs. 86.23, while the market value per share was Rs. 344.58, nearly four times book value. Despite ongoing losses, investors continue to value RHGCL at a premium, reflecting long-term optimism in its hydropower assets.