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

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.