National Hydro Power Q4 Results: Return to Profitability Amid Volatile Margins

National Hydro Power Company (NHPC) has published its audited financial results for the fourth quarter of FY 2024/25, showing a turnaround in performance with positive net income after several loss-making periods.

The company reported total revenue of Rs. 162.89 million in Q4, reflecting a 100.20% YoY growth, though slightly below the Rs. 189.37 million recorded in Q4 of the previous year. Sequentially, revenues nearly doubled from Q3’s Rs. 82.36 million, signaling strong recovery in electricity sales and operations.

Gross profit stood at Rs. 85.21 million, compared to Rs. 113.29 million in the same quarter last year. The gross profit margin slipped to 52.31%, down from 63.11% in Q3 and 59.83% in Q4 of the prior year, indicating increased cost pressures despite higher revenue.

Encouragingly, NHPC posted a net income of Rs. 3.13 million, compared to a heavy loss of Rs. 23 million in Q4 2023/24. This recovery also comes after two loss-making quarters earlier in FY 2024/25. However, the net margin remained thin at 1.92%, showing profitability is still fragile.

On a broader scale, ROA was 0.11% and ROE was 0.13%, reflecting marginal improvement. EPS stood at Rs. 0.13 (annualized), recovering from last year’s negative Rs. 0.93. The reported PE ratio, however, remains extremely high at 1,684, highlighting the disconnect between earnings and stock price.

Book value per share declined slightly to Rs. 96.39, while the market value per share was recorded at Rs. 213.83, more than double its book value, suggesting high investor expectations despite weak fundamentals.