Kathmandu: Sona Packaging Industries has reported a robust financial performance, achieving a turnover of approximately Rs 1.893 billion within the first nine months of the current fiscal year.
This follows a successful previous fiscal year where the company saw its business grow by 20 percent to reach Rs 2.072 billion, a significant increase from Rs 1.73 billion in 2024 and Rs 1.745 billion in 2023. The company has attributed this steady upward trajectory to its strategic initiatives in capacity expansion and the diversification of its manufacturing capabilities.
The introduction of EXT laminate roll materials has proved to be a major catalyst for the company’s recent success. This specific product line accounted for 31 percent of the total turnover in the last fiscal year and has further surged to represent 40 percent of sales during the current nine-month period.
In addition to rising revenue, Sona Packaging has also seen an improvement in its profitability, with profit margins increasing from 9.75 percent in the previous fiscal year to 10.46 percent in the current period. The company’s cash reserves have also shown significant growth, climbing from NPR 87 million in 2022 to NPR 146 million by the end of the last fiscal year.
To support its expansion and fulfil working capital requirements, the company has increased its borrowing, resulting in a gearing ratio that rose from 0.83 times last year to 1.14 times in the current period. Despite the increase in debt, the company’s financial indicators remain strong, particularly its interest coverage ratio, which improved from 6.42 times to 8.98 times recently. While the tangible net worth had grown to Rs 507 million in the last fiscal year, it currently stands at Rs 500 million following a dividend distribution of NPR 100 million to shareholders.
Established in 2007, Sona Packaging Industries specializes in the production of flexible wrappers and various packaging materials, maintaining a monthly production capacity of 900 metric tons. Under the leadership of Chairman Chunna Prasad Sharma, the company recently underwent a credit rating process for a total of NPR 986.3 million in credit facilities. This includes Rs 86.3 million for long-term loans and Rs 900 million for short-term financing to ensure continued operational stability and support future growth initiatives.
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