High project expenses, lower electricity production and sales resulting 31% decline in net profit of United Modi Hydropower in Q3
Tue, Jul 7, 2020 10:48 AM on Financial Analysis, Latest,
United Modi Hydropower Limited (UMHL) has posted its net profit of Rs. 4.04 crore which is 31% lower than the corresponding quarter.
According to the unaudited financial report published, UMHL has earned Rs. 23.52 crore as revenue from operations whereas it was Rs. 23.05 crore in the corresponding quarter of FY 2075/76.
The company sits at a fair liquidity position with a current ratio of 2.70x compared to its previous quarter of 1.94x.
The company seems to have decreased its net profit margin to 17.71% in Q3 FY 76/77 from 37.79% in the previous quarter. This is mainly due to the increase in operating expenses.
The share capital of UMHL stands at 1.15 Arba and Reserve and surplus stands at R.s 5.23 crore which is 27.63% lower than the corresponding quarter of the previous year.
The annualized EPS of UMHL stands at Rs 4.68 and net worth per share stands at Rs. 104.55.
Highlights:
|
Particulars |
3rd Quarter FY2076/2077 |
3rd Quarter FY 2075/2076 |
Growth (%) |
|---|---|---|---|
|
Total pId-up Capital ('000) |
1,150,000 |
1,150,000 |
|
|
Reserve and surplus ('000) |
52,315 |
72,295 |
27.67% |
|
Revenue from operations ('000) |
235,221 |
230,589 |
2.01% |
|
Net Profit ('000) |
40,402 |
58,560 |
-31.01% |
|
Net Profit Margin (%) |
17.71% |
25.39% |
|
|
Earnings per share (Rs.) |
3.59 |
5.09 |
|
|
Current Ratio (times) |
2.70 |
3.74 |
|
According to the management, due to the Covid-19, timely maintenance of machinery was not effectively carried out which affected the generation of electricity and led to the lower sale which affected the total revenue. The company clarifies that due to the government-enforced lockdown across the country, the works which were already carried out had to be stopped which is likely to affect the efficiency in the generation process.
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