Shiva Shree Hydropower Q4 Results: Revenue Growth Strong, But Profitability Remains Weak

Shiva Shree Hydropower Ltd. (SSHL) has released its audited financial results for the fourth quarter of FY 2024/25, reporting sharp revenue growth but continued challenges in sustaining profitability. The company posted a total revenue of Rs. 396.72 million in Q4, a 185.69% year-on-year increase compared to Rs. 139.00 million in Q4 of the prior year. Sequentially, revenue also improved from Rs. 320.64 million in Q3, reversing the decline seen earlier in the fiscal year.

The company maintained exceptional cost efficiency with gross profit of Rs. 385.59 million, achieving a very high gross margin of 97.19%, consistent with its past performance. This demonstrates SSHL’s ability to generate strong operational surpluses.

However, despite the revenue surge, net income remained weak at Rs. 10.06 million in Q4, a drastic fall from Rs. 85.27 million in Q3 and only a modest recovery from heavy losses of Rs. -358.81 million in Q4 of 2023/24. The net profit margin stood at just 2.54%, down sharply from 26.59% in Q3, highlighting pressure from financing costs and debt servicing.

Return indicators reflect the ongoing stress on financial health. Return on Assets (ROA) improved slightly to 0.24%, after being negative in the past quarters, but still reflects poor asset efficiency. Return on Equity (ROE) remains heavily negative, reported at -108.76%, signaling that losses continue to erode shareholder value.

On a per-share basis, EPS (annualized) was Rs. 0.68, far below Rs. 7.70 in Q3, though a recovery from deep losses (-24.30) recorded in Q4 of last year. Meanwhile, the reported PE ratio surged to 375.49, driven more by weak earnings than by market optimism.

From a balance sheet perspective, the book value per share stood at Rs. 12.56, showing capital erosion compared to Rs. 16.11 in Q1. Despite this, the market value per share rose to Rs. 255.93, more than 20 times the book value, indicating investor sentiment remains optimistic about long-term growth potential despite current financial strain.

Dividend per share has not been declared for FY 2024/25, which is in line with the company’s fragile profitability.