Sayapatri Hydropower Q4 Financial Highlights: Strong Revenue, Weak EPS & High Valuation
Author
NepseTrading
Sayapatri Hydropower Limited has released its audited financial results for the fourth quarter of fiscal year 2024/25, showing a mixed performance across key indicators.
The company’s total revenue stood at Rs. 57.81 million, slightly above the Rs. 57.33 million recorded in the same quarter last year, reflecting a modest year-on-year growth of 0.57%. Compared to the third quarter, revenue rose sharply by 18.2%, signaling improved generation and sales in the final quarter.
Despite stable revenue, gross profit declined to Rs. 49.77 million from Rs. 52.73 million in the same period last year, lowering the gross margin from 91.99% to 86.09%. This suggests rising operating expenses and cost pressures in hydropower operations.
On the profitability front, net income improved significantly year-on-year, reaching Rs. 5.77 million compared to Rs. 1.45 million last year. However, it was lower than previous quarters where the company had posted stronger earnings, highlighting fluctuations in profitability. Net profit margin for Q4 was just under 10%, a sharp drop from Q1’s 49%.
Key financial ratios also reflect a cautious outlook. Return on Assets (ROA) dropped to 1.16% while Return on Equity (ROE) slipped to 2.09%, both weaker compared to earlier quarters. The company’s earnings per share (EPS) fell to Rs. 1.93 (annualized), down from Rs. 17.80 in Q1, indicating reduced shareholder returns.
Meanwhile, the company’s book value per share remains stable at Rs. 91.38, close to last year’s Rs. 89.46, showing steady asset strength. However, the market price per share has surged to Rs. 667.69 from Rs. 599.90 a year ago, reflecting strong investor confidence despite declining profitability. The reported price-to-earnings (PE) ratio stands at a steep 346.67, suggesting overvaluation risks in the current market sentiment.
Overall, Sayapatri Hydropower closed the fiscal year with resilient revenues but volatile profits, raising questions about operational efficiency and future dividend sustainability. Investors appear optimistic, but fundamentals point to the need for cost management and profit stabilization.
