Kathmandu: Sahas Urja Limited, the private sector promoter of the 86 MW Solu Khola (Dudh Koshi) Hydropower Project, has reported a significant profit surge for the last fiscal year, driven by lower interest rates and reduced financial costs.
The company posted a net profit of Rs 902.33 million in the fiscal year, marking a 114.66 percent increase from the Rs 420.36 million recorded in the previous year. The jump was attributed to increased electricity sales revenue and a sharp drop in financing expenses.
Electricity sales revenue rose by 8.20 percent year-on-year to Rs 2.648 billion, while net income after direct expenses and project amortization reached Rs 1.829 billion. With interest rates declining, Sahas Urja’s financial costs dropped from Rs 1.165 billion to Rs 805.9 million, further boosting profitability.
Sahas Urja recently acquired a 51 percent stake in Times Energy, the license holder for the Budhi Gandaki Hydropower Project. The company is now managing financing and agreements for the project, which has a total estimated cost of Rs 70 billion. Of this, Rs 52.5 billion in loans has already reached financial closure.
Following the distribution of bonus shares from the previous year’s profits, the company’s paid-up capital increased by 8 percent to Rs 3.78 billion. Despite the higher capital base, strong earnings growth lifted earnings per share to Rs 23.88, while net worth per share reached Rs 184. The company’s price-to-earnings ratio stands at 26.80 times, with reserves and retained earnings totaling Rs 3.169 billion.
Comment Here