With The Decline In Revenue Butwal Power Company Limited Reports Decline In Net Profit; What IsThe Project Status?

Butwal Power Company Limited (BPCL) has reported a decline in net profit by 31% in the fourth quarter (Q4) of the current FY 2077/78. The profit decreased to Rs. 50.46 crores in this quarter from Rs. 73.12 crores in the corresponding quarter of the previous year.

BPCL has sold electricity worth Rs. 64.94 crores and collected revenue from other sources worth Rs. 69.08 crores by the end of Q4.

Its reserve fund stands at Rs. 4.04 Arba with share capital at Rs 2.95 Arba.

One of its promising investments was taken over by NEA as per the agreement, the dividend income from Khimti Hydropower was cut in half i.e., 8.44%. As per the management, the Nyadi Hydropower project (NHP) 30 MW is 99% completed. The generation license for the Lower Manang Marsyangdi Hydroelectric Project (LMMHEP) at a capacity of 140 MW has been re-optimized, however, the capacity is revised to 139.2 MW. BPCL has acquired MMHEP to develop with Chinese JV partners for which generation license has been received for 282 MW capacity which is re-optimized at 135 MW. The company has also acquired 327 MW Upper Marsyandgi-2 Hydroelectric projects (UM2HEP).

The company sits in a fair liquidity position of 8.58 times. The acceptable ratio is 1.5 times.

Its earning per share stands at Rs. 17.10. The net worth per share at Rs 237.15 and the P/E ratio stood at 29.59 times.

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