Liberty Energy Company Reports Loss Of Rs. 1.9 Crores in Q3 (FY 78/79); 25 MW Upper Dordi “A” Hydropower Project is Still Under Construction
Sun, May 8, 2022 2:48 PM on Latest, Financial Analysis, Stock Market,
Liberty Energy Company Ltd has published the third quarter (Q3) report of the current FY 2078/79. The profit decreased to Rs. 1.9 crores in this quarter from Rs.3.4 crores in the corresponding quarter of the previous year.
LEC has not reported revenue from the sale of electricity as the upper Dordi “A” Hydropower Project (25 MW) owned by a company located in the Lamjung district is still under construction.
The company made an investment of Rs. 10 Lakhs in this fiscal year. Similarly, the retained earnings of the company stand at negative Rs. 17.08 Crores with share capital at Rs. 1.50 Arba. At this capital, the annualized earning per share stands at Rs. -1.33.
The management has clarified that the reason behind the negative EPS of the company is due to all the overhead costs which were not related or not directly attributable to the project Upper Dordi ‘A’ Hydropower has been charged and transferred to the Profit and Loss Account as per the rules and guidelines implemented by the Nepal Financial Reporting Standards (NFRS). Previously, such costs were directly charged to capital work-in-progress.
The current ratio of the company is 0.11 times. The net worth per share at Rs 88.61 and the return on assets (ROA) stood at 0.35
Major financial highlights
| Particulars (Rs in 000) | Liberty Energy Company Ltd | ||
|---|---|---|---|
| Q3 2078/79 | Q3 2077/78 | Difference | |
| Share Capital | 1,500,000.00 | 1,500,000.00 | 0.00% |
| Retained Earnings | (170,843.02) | (146,572.85) | |
| Property, Plant and Equipment | 23,214.52 | 13,339.00 | 74.03% |
| Other Investment | 1,000.00 | ||
| Cash and Cash Equivalents | 1,634.64 | 4,624.19 | -64.65% |
| Gross Profit | 3,498.43 | 2,404.09 | 45.52% |
| Profit from Operation | (19,918.68) | (23,871.96) | |
| Profit for the Year | (19,918.68) | (34,232.54) | |
| EPS (In Rs.) | (1.33) | (2.28) | |
| Net Worth per Share (In Rs.) | 88.61 | 90.23 | -1.79% |
| P/E Ratio (Annualized) | (255.29) | (132.77) | |
| Return on Assets | (0.35) | (0.68) | |
| Current Ratio | 0.11 | 0.19 | -43.68% |
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