Upper Tamakoshi Hydropower Ltd. (UPPER) Struggles with Heavy Losses Despite Strong Revenues

Upper Tamakoshi Hydropower Ltd. (UPPER) has published its audited Q4 results for FY 2024/25, showing strong revenue performance but deepening net losses, highlighting continued challenges in cost management and financial stability.

The company reported total revenue of Rs. 6.92 billion, up 19.41% year-over-year from Rs. 8.75 billion in Q4 2023/24. While revenue recovery was notable compared to recent quarters, growth momentum remains inconsistent, as reflected by sharp fluctuations across the fiscal year.

Gross profit stood at Rs. 6.74 billion, with an exceptional margin of 97.41%, consistent with hydropower sector standards. However, bottom-line performance remained negative, with UPPER reporting a net loss of Rs. 2.57 billion, compared to a loss of Rs. 2.69 billion in Q4 last year. The net margin was -37.15%, showing severe financial strain despite strong operating results.

For shareholders, EPS (annualized) remained negative at -Rs. 12.15, compared to -Rs. 12.69 last year. The PE ratio also stayed negative (-16.35), reflecting non-sustainable earnings. Book Value per Share fell to Rs. 45.34, down from Rs. 56.88 in Q4 2023/24, reflecting continued erosion of shareholder equity. Despite this, the market value per share was Rs. 198.56, up from Rs. 176.70 last year, showing investors’ long-term optimism in the project’s strategic importance.

Financial Indicators

• ROA (TTM) stood at -3.09%, worsening from -3.24% last year.

• ROE (TTM) remained deeply negative at -22.83%, only slightly improved from -26.46% in Q4 2023/24.

• Gross margins above 95% reflect strong operational efficiency, but high financing costs and debt service obligations are driving losses.