National Hydro Power Company (NHPC) Turns Up Impressive Achievement in First Quarter, What Fueled the Rise in Net Profit?

Sun, Dec 5, 2021 9:55 AM on Financial Analysis, Latest,

National Hydro Power Company Limited (NHPC) has reported a massive rise in net profit in the first quarter (Q1) of the current FY 2078/79. The profit increased to Rs. 58.74 crores in this quarter from Rs. 2.37 crores in the corresponding quarter of the previous year.

It seems that the major contributing factor to the massive increase in net profit is the provision write back. The company has reported a provision write-back of slightly over Rs. 61.72 crores. National Hydro Power Company has received the government's approval for the Lower Indrawati Hydropower Project. The government had invited bids to provide approval, and NHPC's technical and financial proposal proved superior, hence the government gave the approval to the company. As a result, Rs. 61,72,47,430 worth of provision has been written back. 

NHPC has collected total revenue of Rs. 1.35 crores till the end of Q1.

Its reserve fund stands from negative Rs 38.10 crores in the last fiscal year to Rs 23.22 crore till Q1 of the current fiscal year with share capital at Rs 1.38 Arba.

Its earning per share (Not annualized) stands at Rs. 42.39. The net worth per share at Rs. 116.76 and the P/E ratio stood at 10.19 times.

Click here for the Q1 report:

Major Highlights:

Particulars (Rs in 000) National Hydro Power
Q1 2078/79 Q1 2077/78 Difference
Paid Up Capital      1,385,911.20    1,385,911.20 0.00%
Reserce and Surplus          232,238.17       (381,068.92) -160.94%
Property, Plant and Equipment (Net Block)          956,903.59         993,050.28 -3.64%
Investment in associates          449,925.10            37,410.10 1102.68%
Advaces and Receivables          388,205.69            63,538.01 510.98%
Cash and Cash Equivalents                6,339.35               1,825.24 247.32%
Sale of Electricity                1,357.31            66,414.71 -97.96%
Other Income                                  -                        27.86 -100.00%
Provision Write Back          617,247.43                                -   0.00%
Net Profit          587,443.70            23,765.50 2371.83%
 EPS (In Rs.) (Not Annualized)                        42.39                         1.71 2371.83%
Net Worth per Share (In Rs.)                     116.76                      72.50 61.04%
Qtr End P/E Ratio                        10.19                                -   0.00%