Chhyangdi Hydropower Narrows Annual Loss on Higher Electricity Sales and Lower Finance Costs

Chhyangdi Hydropower Limited (CHL) has released its unaudited financial results for the fourth quarter of fiscal year 2081/82, showing a reduction in net loss compared to the previous year. The improvement was mainly driven by a rise in electricity sales revenue and a decline in finance costs.

Loss Reduction Due to Higher Revenue and Cost Savings
As of Ashad-end 2082, CHL reported a net loss of NPR 49.7 million, an improvement from the NPR 53.7 million loss posted in the previous fiscal year — a 7.45% reduction in losses. The company’s electricity sales revenue grew from NPR 99.7 million to NPR 140.1 million, marking a 40.45% increase. This boost in revenue came alongside a decline in finance costs, which dropped from NPR 103.6 million to NPR 96.5 million, reducing interest expense pressure on the bottom line.

Gross Profit Growth
Gross profit increased from NPR 80.3 million to NPR 108.8 million, reflecting improved operational efficiency and better utilization of generating capacity. This margin expansion was a key factor in reducing the company’s overall losses for the year.

Financial Position
Despite the improvement, CHL’s retained earnings remain deeply negative at NPR -206.9 million, indicating accumulated losses from previous years. The company’s paid-up capital stands at NPR 386.9 million. At the end of the fiscal year, earnings per share (EPS) remained negative at NPR -12.85, while the net worth per share stood at NPR 51.42, showing a relatively weak capital position compared to par value.

Chhyangdi Hydropower’s FY 2081/82 performance shows encouraging signs, with revenue growth and cost reductions helping narrow annual losses. The significant increase in electricity sales revenue suggests higher production levels or improved sales arrangements, while reduced finance costs indicate better debt management. However, the persistent negative retained earnings and negative EPS highlight ongoing financial challenges. To move towards profitability, the company will need to maintain its revenue growth trajectory, continue managing finance costs effectively, and address its high accumulated losses to strengthen shareholder value.