Profitability remains stagnant for Mountain energy in Q2; Find out what the management has to say about projects
Tue, Feb 9, 2021 9:21 AM on Latest, Company Analysis,
Mountain Energy Nepal Limited (MENL) has posted net profit growth of meagre 1.99% in the second quarter (Q2) of the current FY 2077/78. The profit increased to Rs. 5.14 crores in this quarter from Rs. 5.04 crores in the corresponding quarter of previous year.
MENL has sold electricity of worth Rs. 8.21 crores and collected revenue from other sources worth Rs. 14.53 thousand by the end of Q2.
As per the management, revenue from sale of electricity includes only revenue generated by Tadi Khola. In the financial report revenue from Mistri Khola Project is also mention which is Rs. 1.70 crores despite underdevelopment of the project. This revenue is the forecasted revenue by the project (not realized). The company expects Mistri Khola project to be completed in mid Chaitra, 2078.
Its reserve fund stands at Rs. 34.23 crores with share capital at Rs 1.96 Arba. The short-term and long-term borrowings of the company rose to Rs. 3.89 Arba by the end of the second quarter.
The company sits in a fair liquidity position of 7.62 times. The acceptable ratio is 1.5 times.
Its annualized earning per share stands at Rs. 117.69. The net worth per share at Rs 134.97 and P/E ratio stood at 134.97 times.
Major Highlights:
|
Particulars |
Mountain Energy Nepal Limited |
||
|---|---|---|---|
|
Q2, 2077/2078 |
Q2, 2076/2077 |
Difference |
|
|
Paid-Up Capital |
1,968,027.00 |
1,574,421.60 |
- |
|
Reserve & Surplus |
342,315.38 |
283,980.43 |
20.54% |
|
Plant, Property and Equipment |
32,606.46 |
30,349.54 |
7.44% |
|
Borrowings |
3,895,569.54 |
3,402,743.20 |
14.48% |
|
Total Income |
82,150.25 |
83,891.00 |
-2.08% |
|
Administrative Expenses |
11,781.10 |
12,473.10 |
-5.55% |
|
Financial Expenses |
12,927.78 |
19,859.80 |
-34.90% |
|
Net Profit |
51,499.51 |
50,495.24 |
1.99% |
|
Earnings per share (Rs.) |
5.23 |
6.41 |
- |
|
Net worth per share (Rs.) |
117.39 |
118.04 |
- |
|
P/E Ratio (times) |
134.97 |
- |
- |
|
Current Ratio (times) |
7.62 |
- |
- |
