Lower electricity generation due to impact of COVID-19 leads to decrease in Revenue of United Modi Hydropower; Net Profit decreased by 39.47%
Thu, Aug 13, 2020 12:50 PM on Latest, Company Analysis,
United Modi Hydropower Company Limited (UMHL) has published the unaudited fourth-quarter report for the FY 2076/2077 today. As per the report, the net profit of the company has decreased to Rs. 5.75 crores from Rs. 9.50 crores.
The company’s paid-up capital remains at Rs. 1.15 Arba with a reserve and surplus of Rs. 6.94 crores in the fiscal year 2076/2077. Though the reserve and surplus have decreased by 36.15%.
The company has decreased borrowings by 15.02% and stood at Rs. 54.38 crores in this quarter which has led to a decrease in financial costs for the company and retains more of its revenue.
However, as per the management, due to the lockdown enforced by the government around the nation, the company could not generate enough electricity because of untimely maintenance, hence, income from the sale of electricity (core business revenue) has slightly decreased by 4.68% to Rs. 30.11 crores from Rs. 31.59 crores in the corresponding quarter of the previous year. Also, since the company has incorporated the cost of lower Modi-2 Jalavidyut, the profit has been somewhat affected.
The company also wants its investors to know that due to the Purchasing power Agreement (PPA) with NEA, from 2076/08/08, the company is to sell its electricity at the old rate which may have an impact on the revenue side in the future.
The operating profit of the company has decreased by 32.37% and stood at Rs. 6.42 crores compared to the corresponding quarter of the previous year. The company sits at a fair liquidity position of 5.55X.
The company’s EPS stands at Rs. 5.00 and net worth per share stands at Rs. 106.04. The qtr end P/E ratio of the company stood at 20.8 times for the end of the fourth quarter.
Major Highlights:
|
Particulars ('000) |
United Modi Hydropower Company Limited |
||
|---|---|---|---|
|
Q4, 2076/2077 |
Q4,2075/2076 |
Difference |
|
|
Paid-up capital |
1,150,000.00 |
1,150,000.00 |
- |
|
Reserves and Surplus |
69,438.00 |
108,754.00 |
-36.15% |
|
Plant Property and Equipment |
1,605,149.00 |
1,677,022.00 |
-4.29% |
|
Borrowings |
543,838.00 |
639,935.00 |
-15.02% |
|
Income from Sale of Electricity |
301,173.00 |
315,959.00 |
-4.68% |
|
Staff Expenses |
21,131.00 |
20,383.00 |
3.67% |
|
Finance Costs |
67,198.00 |
81,567.00 |
-17.62% |
|
Operating Profit |
64,276.00 |
95,036.00 |
-32.37% |
|
Net Profit |
57,526.00 |
95,036.00 |
-39.47% |
|
EPS (In Rs.) |
5.00 |
8.26 |
-39.47% |
|
Net worth per share (In Rs.) |
106.04 |
109.45 |
-3.12% |
|
Qtr End Price (In Rs.) |
104 |
- |
- |
|
Qtr End P/E Ratio (times) |
20.8 |
- |
- |
|
Current Ratio (times) |
5.55 |
- |
- |
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