Terhathum Power Company Q4 Results: Revenue Growth Strong, Profitability Moderates

Terhathum Power Company Limited (TPC) has published its audited financial results for the fourth quarter of FY 2024/25, reflecting steady revenue growth but moderation in profitability compared to earlier quarters. The company reported a total revenue of Rs. 155.12 million in Q4, up 23.61% year-on-year compared to Rs. 129.77 million in the same quarter last year. Sequentially, revenue also grew from Rs. 121.33 million in Q3, continuing its upward trajectory for the fiscal year.

The gross profit stood at Rs. 100.51 million, translating to a margin of 64.79%, lower than Q3’s 67% and well below Q1’s high of 82.54%. This shows that while revenue is rising, cost pressures have begun to impact operating margins.

On the earnings front, net income came in at Rs. 23.39 million in Q4, slightly higher than Rs. 22.07 million in Q3, but significantly below Rs. 39.76 million in Q2 and Rs. 46.03 million in Q1. Compared to the net loss of Rs. -30.06 million in Q4 of 2023/24, the company has shown a turnaround, though margins have narrowed. The net profit margin stood at 15.08%, down from 18.19% in Q3 and 36.52% in Q2.

Return indicators improved year-on-year. Return on Assets (ROA) reached 2.03%, compared to -2.45% last year, while Return on Equity (ROE) rose to 9.37%, a significant improvement from -11.97% in Q4 of the prior year. These figures highlight TPC’s progress in converting revenue into shareholder value, despite margin contraction.

On a per-share basis, EPS (annualized) stood at Rs. 5.85, down from Rs. 7.36 in Q3 and much lower than Rs. 46.03 in Q1, but a solid improvement from the negative Rs. -7.51 recorded in Q4 last year. Meanwhile, the reported PE ratio stood at 65.99, indicating relatively high valuation against current earnings.

From a balance sheet perspective, the book value per share was Rs. 61.63, compared to a market value per share of Rs. 385.89. This large gap highlights investor confidence and premium pricing for TPC shares, despite the declining trend in profitability through the fiscal year.

Dividend per share has not yet been declared for FY 2024/25, leaving investors anticipating whether management will allocate earnings toward shareholder returns or reinvest in future growth.