Arun Valley Hydropower's Financial Progress Explosive, Profit Increased by 57 Times

Kathmandu — Arun Valley Hydropower Development Company has shown extraordinary financial performance in the third quarter of FY 2081. According to the data till Chaitra 31, 2081, the company surprised all investors by increasing its profit by more than 57 times.

The company’s share capital increased by 106 percent, rising from 1.86 billion to 3.84 billion rupees. Likewise, other equity increased by 464 percent to 367.88 million rupees. This indicates that the company has strengthened its capital structure.

Looking at operational income, revenue increased by 228 percent to 197.43 million rupees, which is significantly higher compared to 6 million rupees in the previous year. With the increase in revenue, gross profit reached 157.98 million rupees, a 752 percent rise compared to last year.

The positive side is even more interesting when we see that finance cost has been reduced by 79 percent. Last year, it was 14.85 million rupees, now it has dropped to just 3.09 million rupees. With the decrease in finance costs and increase in income, total expenses were reduced by 50 percent, now limited to 109.83 million rupees.

Therefore, the company’s net profit reached 341.90 million rupees, which is more than 57 times higher compared to 579 thousand rupees of the previous year. This is the company’s best performance so far.

This impact is also reflected in the EPS (Earnings Per Share). Last year it was only 0.41 rupees, this year it has climbed to 11.85 rupees. Net worth per share also increased by 6 rupees to reach 109.56 rupees.

However, the PE ratio has dropped from 420.58 last year to 21.09 now, which indicates the company’s earnings capacity is still attractive relative to the market value.