NEPSE trading

UMHL
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By Sandeep Chaudhary

United Modi Hydropower Q4 Results: Stable Revenue, Rising Profits, and Strong Market Valuation

United Modi Hydropower Q4 Results: Stable Revenue, Rising Profits, and Strong Market Valuation

United Modi Hydropower Ltd. (UMHL) has published its audited financial results for the fourth quarter of FY 2024/25, highlighting revenue stability alongside significant improvement in net profitability. The company reported a total revenue of Rs. 282.68 million in Q4, almost unchanged year-on-year compared to Rs. 282.77 million in Q4 of 2023/24. Sequentially, revenue grew modestly by 0.86% from Q3, marking a steady performance despite seasonal fluctuations in electricity generation.

The gross profit stood at Rs. 264.82 million, maintaining a robust gross margin of 93.68%, consistent with the company’s strong cost-control record. While slightly below Q2’s peak of 95.21%, the margin reflects UMHL’s operational efficiency in its hydropower projects.

Most notably, net income surged to Rs. 52.05 million in Q4, a sharp improvement from Rs. 30.70 million in Q3 and nearly double the Rs. 28.81 million earned in Q4 of last year. The net profit margin rose to 18.41%, significantly above last year’s 10.19%, showing better bottom-line performance driven by revenue stability and cost optimization.

UMHL’s return ratios also strengthened. Return on Assets (ROA) climbed to 2.49%, compared to 1.37% in Q4 of last year, while Return on Equity (ROE) improved to 3.93%, from 2.24% a year earlier. These figures demonstrate enhanced efficiency in generating returns for shareholders.

On a per-share basis, EPS (annualized) came in at Rs. 4.23, almost double last year’s Rs. 2.34, though slightly below the unusually high Rs. 10.48 in Q1 due to seasonal variations in generation. Meanwhile, the reported PE ratio stood at 133.19, reflecting relatively high market valuations compared to earnings.

The company’s book value per share stood at Rs. 107.68, while the market value per share soared to Rs. 563.37, more than five times book value. This premium pricing highlights investors’ strong confidence in UMHL’s long-term growth potential and stable cash flows in the hydropower sector.

Dividend per share has not yet been declared for FY 2024/25. Given the rising profitability, investors will be watching closely to see whether UMHL announces shareholder returns this year.

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