Sahas Urja Net Profit Increased By 75.48% In Q3; 86 MW project Is In Final Phase of Completion

Sahas Urja Limited has reported a massive 75.48 percent rise in net profit for the third quarter of the current fiscal year 2078/79.

Publishing the unaudited financial report for the third quarter today, the hydropower company has stated its net profit has risen to Rs 58.1 crore in the third quarter of the fiscal year 2078/79 up from Rs 33.1 crore in the corresponding quarter of the previous fiscal year 2077/78.

Sahas Urja total income increased by 74.75 percent in the third quarter of this fiscal year. The share capital remains at Rs. 3.50 arba, Whereas, Rs 1.98 arba in the Reserves. It’s annualized Earning per Share (EPS) stand at Rs. 22.15, net worth per share stand is at Rs 156.84 and the company traded at a P/E multiple of 26.73 times.

The company is in the phase of constructing Solu Khola (Dudh Koshi) Hydropower Project of 86 MW. As per the ICRA Nepal Rating the per MW budgeted cost of the 86-MW project is NPR 171 million per MW despite the recent ~24% cost escalation over the original budgeted cost (revised estimated project cost is NPR 14.69 billion as compared to the original cost estimate of NPR 11.86 billion).

Also, the 86-MW project is at the advanced stage of development with around ~80–85% of physical progress achieved till March-2022. Similarly, the project has achieved ~74% financial progress (on revised cost estimate) till March 2022. With completed headworks, breakthrough of the ~5km long tunnel as well as completion of all excavation works in the project structures, the risk of geological surprises has come down considerably which translates to a relatively lower project execution risk.

Click here for Q3 report

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