Butwal Power Company Posts 16.58% Profit Growth on Higher Electricity Sales

Butwal Power Company Limited (BPCL) has released its unaudited financial results for the fourth quarter of fiscal year 2081/82, reporting a notable increase in net profit compared to the same period last year, supported by stronger electricity sales and operational efficiency gains.

Profit Growth Driven by Revenue and Operational Performance
As of Ashad-end 2082, BPCL’s net profit stood at NPR 226.15 million, up 16.58% from NPR 193.99 million in the previous year. The growth was mainly fueled by a 5.79% rise in electricity sales revenue, which increased from NPR 693.64 million to NPR 733.79 million.

Gross profit expanded by 23.92% to NPR 312.10 million, reflecting better cost control and improved margins. Operational profit also surged by 24.34% to NPR 280.75 million from NPR 225.80 million last year, indicating higher efficiency in the company’s core power generation and sales operations. However, other income declined by 6.74% to NPR 77.44 million, slightly offsetting the overall revenue gains.

Earnings Per Share and Valuation Indicators
Annualized earnings per share (EPS) increased by NPR 0.94 to NPR 6.63, compared to NPR 5.69 last year. The company’s net worth per share improved marginally by 1.74% to NPR 208.02. The price-to-earnings (P/E) ratio surged to 144.39 from 58.08, suggesting that the company’s market valuation has risen significantly, possibly reflecting investor optimism about future earnings potential.

Equity Position and Capital Structure
BPCL maintained its paid-up capital at NPR 3.41 billion, unchanged from the previous year, while other equity rose slightly by 1.64% to NPR 3.68 billion, indicating gradual strengthening of the company’s financial base.

Butwal Power Company’s FY 2081/82 performance reflects healthy operational growth, with double-digit increases in both gross and operating profits, driven by higher sales and improved cost efficiency. While the drop in other income slightly tempered overall gains, the company’s consistent profitability and stable capital base provide a strong foundation for future expansion. The sharp increase in the P/E ratio indicates heightened investor expectations, but it also suggests that the stock may now be trading at a premium valuation, warranting close monitoring of future earnings performance to justify the market price.