Sanjen Jalavidhyut Company Reports Strong Revenue Growth but Sustained Losses in Q4 FY 2024/25

Published on August 22, 2025

Sanjen Jalavidhyut Company Limited (SJCL) has published its audited financial results for the fourth quarter of fiscal year 2024/25, showing a sharp increase in revenue but continued bottom-line losses. The company posted a total revenue of Rs. 874.90 million, a massive 431.92% year-on-year growth compared to Rs. 197.87 million in Q4 of 2023/24. On a sequential basis, revenue surged significantly from Rs. 477.35 million in Q3 and just Rs. 63.44 million in Q1, highlighting the scaling of generation capacity and energy sales.

Despite this revenue boom, profitability remains a concern. SJCL recorded a net loss of Rs. 279.38 million in Q4, widening from Rs. 242.86 million in Q3 and Rs. 155.34 million in Q4 of last year. The company’s net profit margin stood at -31.93%, a considerable improvement compared to the -86.65% in Q1, but still reflecting heavy cost and financing burdens.

The gross profit for the quarter was Rs. 720.97 million, maintaining a solid 82.41% gross margin, which is relatively consistent with historical levels (79.50% in Q4 of last year). This indicates strong operational efficiency at the gross level, but high financing costs and depreciation continue to erode bottom-line performance.

Key return indicators remained negative. Return on Assets (ROA) was at -2.22%, and Return on Equity (ROE) further deteriorated to -8.98%, compared to -4.58% a year ago. These figures underscore the company’s struggles in converting its expanded revenue into shareholder value.

The company’s earnings per share (EPS) for Q4 stood at -7.65 (annualized), compared to -4.26 in the same quarter last year, showing that losses per share have nearly doubled year-on-year. Similarly, the reported PE ratio remained negative at -41.45, reflecting loss-making status despite a relatively strong market valuation.

From a balance sheet perspective, the book value per share declined to Rs. 81.50 in Q4, down from Rs. 89.13 a year earlier. However, the market value per share remained resilient at Rs. 317.28, up from Rs. 283.70 in Q4 of last year. This indicates that despite weak earnings, investors continue to value SJCL’s long-term hydroelectric potential at a premium.

Dividend per share has not been declared, which is expected given the sustained losses. Shareholders will likely need to wait until profitability improves before dividend payouts are considered.

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.

Soaltee Hotel Q4: Strong Revenue Growth, Stable Margins, and Robust Profitability

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

Hathway Investment Nepal reported Q4 revenue of Rs. 197.49 million (+275.88% YoY) and net income of Rs. 64.95 million (-22.67% YoY). Margins remain stable with 32.89% net margin, but ROA (2.39%) and ROE (3.08%) indicate moderate returns. EPS stood at Rs. 2.29, while the stock trades at a very high P/E of 531.92, signaling stretched valuations. Despite the revenue rebound, the absence of dividends this year contrasts with last year’s Rs. 10.53 payout.

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

City Hotel Limited Q4: Heavy Losses Persist Despite Strong Revenue Base

City Hotel Limited (CITY) reported Q4 FY 2024/25 revenue of Rs. 522.31 million (-9.09% YoY) but a net loss of Rs. 198.97 million. Gross profit margin stood at 28.77%, while net margin was deeply negative at -38.09%. ROA and ROE were -3.58% and -13.83% respectively. EPS came in at -Rs. 11.89, with book value declining to Rs. 80.83. Despite ongoing losses, CITY’s market value per share jumped to Rs. 873.65, suggesting that investors are pricing in long-term tourism recovery prospects.

Standard Chartered Nepal Q4 Results: Stable Profitability Despite Revenue Dip

Standard Chartered Bank Nepal (SCB) reported Q4 FY 2024/25 revenue of Rs. 8.33 billion (-6.60% YoY) with net income of Rs. 3.03 billion (-8.4% YoY). Despite revenue pressure, profit margin strengthened to 36.33%, while ROE stood at 14.41%. Asset quality improved with NPLs down to 1.47% and provisioning coverage rising to 160%. EPS stood at Rs. 30.17, with a PE ratio of 21.75. The bank continues to maintain strong capitalization and liquidity, positioning itself as one of the most stable commercial banks in Nepal.

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.

NIC Asia Bank Q4 Results: Weak Profit Growth Despite Solid Revenue Base

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Nepal Investment Bank Q4 Results: Strong Profitability Amid Revenue Decline

Nepal Investment Bank (NIMB) reported Q4 revenue of Rs. 36.10 billion (-11.22% YoY) but net income surged 29.9% to Rs. 6.75 billion, with margins strengthening to 18.72%. ROE stood at 10.57% and EPS at Rs. 19.80, reflecting robust profitability. NPL ratio inched up to 5.85%, but loan-loss coverage improved to 108.87%. Lower cost of funds and strong liquidity supported earnings. Market value per share rose to Rs. 231.02, highlighting investor confidence.