Three Star Hydropower Limited (TSHL) Ends Q4 Nearly Breakeven After Heavy Past Losses

Three Star Hydropower Limited (TSHL) has released its audited Q4 results for FY 2024/25, showing a near break-even performance after consecutive years of steep losses, though profitability remains fragile despite stronger revenue growth.

The company reported total revenue of Rs. 150.62 million, a sharp 594.66% YoY increase from just Rs. 113.32 million in Q4 2023/24. Sequential revenue growth was steady across the fiscal year, reflecting stronger generation and sales.

Gross profit stood at Rs. 129.02 million, with a healthy margin of 85.66%, consistent with earlier quarters and slightly below last year’s 88.77%. However, bottom-line performance remained weak, as net income was almost flat at Rs. 0.25 million, compared to a heavy loss of Rs. 61.15 million in Q4 last year. The net margin stood at just 0.17%, highlighting minimal profitability despite revenue expansion.

For shareholders, EPS (annualized) was Rs. 0.05, a dramatic improvement from -Rs. 12.42 last year, but still reflecting negligible returns. The PE ratio skyrocketed to 14,205x, reflecting overstretched valuation relative to earnings. Book Value per Share stood at Rs. 68.47, stable compared to Rs. 68.76 last year. Despite weak fundamentals, the market price of TSHL surged to Rs. 731.70, up from Rs. 590.00 a year earlier, showing strong investor sentiment toward the hydropower sector.

Financial Indicators

• ROA (TTM) improved to 0.02%, from -4.65% last year, but remains negligible.

• ROE (TTM) also turned slightly positive at 0.07%, compared to -15.64% last year, indicating very limited shareholder value creation.

• Operating efficiency remained solid, with margins above 80%, but financing costs and weak net earnings continue to weigh down results.