Nepal Warehousing Company Q4 Results: Revenue Surges to Rs. 314M but Losses Deepen with EPS at -8.13
Author
Nepsetrading
Nepal Warehousing Company Limited (NWCL) has published its audited financial results for the fourth quarter of fiscal year 2024/25, reflecting severe challenges in profitability despite a remarkable surge in revenue.
The company’s total revenue jumped to Rs. 314 million in Q4, a massive increase compared to just Rs. 14.84 million in the same period last year. This exponential growth, however, has not translated into profitability, as expenses and operating inefficiencies continue to weigh heavily on the business.
NWCL reported a gross profit of Rs. 25.66 million, significantly higher than Rs. 3.45 million a year ago. However, the gross profit margin contracted sharply to just 8.18% in Q4, compared to 27.05% last year and above 60% in earlier quarters, showing a decline in cost efficiency.
The company remained in deep losses. Net income stood at a negative Rs. 55.87 million, slightly better than last year’s Rs. 80.03 million loss but still reflecting continued financial stress. Net profit margin deteriorated to -17.81%, underscoring heavy cost burdens relative to income.
Financial ratios highlight the company’s ongoing struggle. Return on Assets (ROA) fell to -3.37%, while Return on Equity (ROE) declined further to -10.18%. Similarly, Earnings per Share (EPS) stood at -8.13, extending the negative trend of the past fiscal periods.
Despite these weak fundamentals, investor sentiment in the secondary market remains surprisingly bullish. The company’s market value per share reached Rs. 922.39 in Q4, up from Rs. 898 last year, even though book value per share stands at only Rs. 74.31. This has pushed the price-to-earnings (PE) ratio to -113.49, highlighting high speculative valuation disconnected from earnings performance.
Overall, NWCL has achieved extraordinary revenue growth but continues to struggle with losses and low margins. While investors remain optimistic, the financial statements reveal the urgent need for cost control and efficiency improvements before revenue gains can be translated into sustainable profitability.
