Increase in Operating Expenses Led to 13.89% Decline in Net Profit of National Hydro Power for Q2; Company to Issue 50% Right Shares Soon
Mon, Jan 30, 2023 9:06 AM on Financial Analysis, Stock Market, Latest,
National Hydro Power Company Limited (NHPC) has reported a decline in net profit by 13.89% in the second quarter (Q2) of the current FY 2079/80. The profit decreased to Rs. 73.61 Lakhs in this quarter from Rs.85.49 Lakhs in the corresponding quarter of previous year.
NHPC has collected total revenue of Rs. 5.58 crores till the end of Q2. On the other hand, the company reports an incline in administrative expenses by 80.30% and interest expenses by 32.42%, which has also affected the profitability of NHPC for this quarter.
The reserves and surplus of the company stands at at Rs. 3.12 crores with share capital at Rs 1.64 Arba. Also, the hydropower company is set to issue 50% right shares worth Rs. 82.21 Crores through issue of 8,221,459.7178 (10: 5) units right shares to its existing shareholders. Hence, the paid-up capital will increase to Rs. 2.46 Arba after the proposed issue. The issue is yet to approve by SEBON.
NHPC is also a major promoter of the 14.15 MW Lower Erkhuwa Hydropower Project in Bhojpur District, Province 1. The project is presently under construction and is expected to start generation within 2023. This project will generate about 80 GWh of energy annually which will generate about N. Rs. 450 million in revenue.
This company is also taking the lead in the study of about 42 megawatts of Likhu hydropower project which is being promoted by the company after concluding the agreement regarding holding of 75 percent shares in Bright Energy Solutions.
Its annualized earning per share stands at Rs. 0.90. The net worth per share at Rs. 101.90 and P/E ratio stood at 280.43 times.
| Particulars (In Rs '000) | National Hydro Power | ||
|---|---|---|---|
| Q2 2079/80 | Q2 2078/79 | Difference | |
| Paid Up Capital | 1,645,016.94 | 1,385,911.20 | 18.70% |
| Reserve & Surplus | 31,208.52 | 260,869.69 | -88.04% |
| Property, Plant & Equipment | 1,019,246.10 | 944,175.30 | 7.95% |
| Advances & Receivables | 121,077.76 | 415,807.48 | -70.88% |
| Provisions | 15,826.10 | 5,306.75 | 198.23% |
| Revenue | 55,893.70 | 55,513.74 | 0.68% |
| Administrative Expenses | 9,373.60 | 5,198.92 | 80.30% |
| Finance Expenses | 8,123.08 | 6,134.55 | 32.42% |
| Net Profit | 7,361.97 | 8,549.26 | -13.89% |
| EPS (In Rs.) | 0.90 | 1.23 | -27.45% |
| Net Worth per Share (In Rs.) | 101.90 | 118.82 | -14.24% |
| Qtr end PE Ratio (times) | 280.43 | - | - |
| Qtr End Market Price | 251 | - | - |
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