Asian Hydropower Reports Heavy Loss, EPS Turns Negative

Asian Hydropower Limited has published its unaudited financial report for the fourth quarter of FY 2081/82, revealing a net loss of NPR 28.16 lakh. Although this is a slight improvement from the previous quarter’s loss of NPR 30.65 lakh, it still reflects a weak financial position compared to the NPR 58.61 lakh loss recorded in the same period last fiscal year. Despite a rise in revenue, increased operational and financial expenses have prevented the company from turning a profit.

In this quarter, the company generated total revenue of NPR 13.64 crore and recorded a gross profit of NPR 11.40 crore. However, high administrative and operating expenses exceeding NPR 11 crore, along with finance costs of NPR 8.46 crore, significantly impacted profitability. As a result, Earnings Per Share (EPS) remains negative at NPR –8.28, compared to –9.02 in the previous quarter and –17.24 in the same period last year.

The company’s total assets stand at NPR 13.16 billion, while total liabilities are at NPR 10.21 billion. It has borrowed over NPR 8.62 billion. The market value per share has dropped to NPR 619.18, and the Price-to-Earnings (P/E) ratio has fallen to –74.76, signaling risk for investors.

On the project development front, Asian Hydropower has obtained a Letter of Intent (LOI) from the Nepal Electricity Authority (NEA) to develop two grid-connected solar PV projects — Haripur (10 MW) and Dhalbekar (30 MW). The company is currently undergoing approval processes and preparing Power Purchase Agreements (PPA).

Externally, the company faced a major disruption in power generation due to damage to the 132kV transmission line caused by flooding in Eastern Nepal. Power production was halted until Kartik 2081, resulting in a revenue loss of over NPR 2.65 crore.

Overall, the company continues to face financial pressure due to persistent losses, high expenses, and negative EPS. However, the ongoing progress in project development and power resumption efforts offer some optimism for potential recovery in upcoming quarters.