Chilime Hydropower proposes 35% dividend, including 20% bonus share

ShareSansar, September 14:

Chilime Hydropower Company Limited has proposed 35 percent dividend – 20 percent bonus share and 15 percent cash – to the shareholders from the net profit the blue-chip company posted in the last fiscal year 2070/71.

A meeting of the Board of Directors took the decision to this effect yesterday, a highly placed source at the company told ShareSansar today.

It may be noted that the dividend proposed by Chilime this time around is slightly less than than it offered last year when it had offered only 30 percent bonus and 10 percent cash dividend for the previous fiscal year 2069/70.

Chilime has nonetheless made its shareholders happy at a time when they were somewhat upset about the management row in the company and also because its profit had dropped slightly by Rs 2.54 crore in the fourth quarter of the last fiscal year 2070/71 due to the rise of the cost of sales and the depreciation and decrease in its interest income.

According to the unaudited balance sheet of Chilime published on Saturday, its profit came down to Rs 93.97 crore last year from Rs 96.50 in the corresponding period of the previous fiscal year 2069/70.

Though the adverse weather condition made an adverse impact in its production thereby hitting a blow to its profit growth, the company stated that hike of 6 percent power purchase rate in fiscal year 2069/70 contributed in the increase of its sales income in the last fiscal year 2070/71.
 
The company’ sales income surged by 1.7 percent to Rs 98.50 crore in last fiscal year as compared to the previous year when it had earned Rs 96.85 crore in sales.

Similarly, cost of sales also reached Rs 9.97 crore, up by Rs 9.08 crore in the previous year.

Its interest income declined to Rs 22.32 crore from Rs 25.40 crore while the depreciation rose to 10.91 crore from Rs 10.71 crore in the previous year.

Chilime also said that the profit it has earned in the last year will be spent in the investment in its subsidiary companies such as Sajen, Mid Bhotekoshi and Rasuwagadi hydropower as well as for the dividend distribution to its shareholders.