Nepal Republic Media Registers Turnaround in Q3 FY 2081/82 with Positive Net Profit

Nepal Republic Media has posted a modest yet notable financial recovery in the third quarter of the fiscal year 2081/82. The company reported a net profit of Rs. 4.63 million, a significant improvement from the net loss of Rs. 5.23 million in the corresponding quarter of the previous fiscal year. This turnaround signals a positive shift in the company’s financial health, driven by both increased revenue and substantial cost reductions.

The company's total revenue increased by 5.83% to Rs. 134.86 million, up from Rs. 127.43 million in Q3 2080/81. At the same time, administrative expenses decreased by 11.17% to Rs. 37.71 million, reflecting tighter cost control and operational efficiency. Additionally, finance expenses fell sharply by nearly 20% to Rs. 21.43 million, which may be attributed to reduced debt levels or lower borrowing costs.

Nepal Republic Media’s long-term borrowings saw a drastic drop of 61.07%, falling to Rs. 85.96 million from Rs. 220.82 million a year earlier. This significant reduction in debt not only lowers financial risk but also positively impacts the bottom line through decreased interest obligations. The improvement in earnings is also reflected in the company’s Earnings Per Share (EPS), which rose to Rs. 0.64 from a negative Rs. 0.72 in the previous year. Furthermore, the net worth per share increased by 1.44% to Rs. 89.07, showcasing a gradual strengthening of shareholder value.

The balance sheet highlights a marginal rise in the “Other Component of Equity,” increasing by 0.07%, while retained earnings remain negative but improved to Rs. -503.06 million from Rs. -515.01 million. On the asset side, property, plant, and equipment declined by 7.17%, possibly indicating asset depreciation or disposal during the period. Notably, the company reported a fresh investment of Rs. 32.8 million this quarter, marking a strategic move for future growth.

The Q3-end Price-to-Earnings (PE) ratio stands at an unusually high 739.22, suggesting an overvalued stock relative to its earnings or possibly reflecting investor optimism about future performance. The market price at quarter-end was Rs. 471.56 per share.

Overall, the financials of Nepal Republic Media for Q3 FY 2081/82 indicate a positive direction with improved profitability, reduced debt, and disciplined cost management. While challenges remain, especially with still-negative retained earnings, the company has clearly started to regain its financial footing.