Despite marginal dip in revenue, company posts stronger earnings and improved balance sheet
Kathmandu — Terhathum Power Company Limited (TPC) has reported a significant 22.19% year-on-year increase in net profit for the first quarter (Q1) of fiscal year 2082/83, reflecting an improvement in its overall financial performance.
The company’s net profit surged to Rs. 5.62 crores in Q1 FY 2082/83, up from Rs. 4.60 crores in the same quarter of the previous fiscal year. This growth came despite a slight decline in power sales revenue, signaling enhanced cost efficiency and reduced financial expenses.
Revenue and Operational Performance
TPC recorded Rs. 8.23 crores in revenue from power sales during the quarter, representing a 0.49% decline compared to the same period last year. The marginal decrease was attributed to minor fluctuations in generation and operational conditions.
However, the company effectively managed its financial costs, which fell by 51.58%, from Rs. 2.12 crores to Rs. 1.03 crores, contributing significantly to the overall profit rise.
Financial Position and Capital Structure
According to the unaudited quarterly report:
- Paid-up capital doubled to Rs. 80 crores, marking a 100% increase year-on-year.
- Long-term loans and borrowings stood at Rs. 36.52 crores, down 59.65% from the previous year’s Rs. 90.50 crores, indicating improved debt management.
- Reserves and surplus were reported at a negative Rs. 31.03 lakhs, narrowing substantially from negative Rs. 13.04 crores in Q1 FY 2081/82.
The company’s annualized Earnings Per Share (EPS) stands at Rs. 28.12, while net worth per share improved to Rs. 99.61, up from Rs. 67.39 last year. The Q1-end price-to-earnings (P/E) ratio is reported at 9.99 times, with a market price of Rs. 280.9 per share.
Operational Highlights (In Rs ‘000)
| Particulars | Q1 2082/83 | Q1 2081/82 | Change (%) |
|---|---|---|---|
| Paid-up Capital | 800,000.00 | 400,000.00 | 100.00% ↑ |
| Reserve Funds & Accumulated Profit | -3,103.67 | -130,431.17 | — |
| Property, Plant & Equipment | 2,143.55 | 2,499.30 | -14.23% ↓ |
| Loans and Borrowings (Long Term) | 365,239.53 | 905,083.64 | -59.65% ↓ |
| Revenue from Operations | 82,307.76 | 82,717.17 | -0.49% ↓ |
| Administrative Costs | 1,003.91 | 794.94 | +26.29% ↑ |
| Financial Costs | 10,308.78 | 21,290.26 | -51.58% ↓ |
| Net Profit | 56,247.67 | 46,033.05 | +22.19% ↑ |
| EPS (In Rs.) | 28.12 | 46.03 | -38.91% ↓ |
| Net Worth per Share (In Rs.) | 99.61 | 67.39 | +47.81% ↑ |
| Qtr End PE Ratio (times) | 9.99 | — | — |
| Qtr End Market Price (Rs.) | 280.9 | — | — |
Outlook
TPC’s Q1 results highlight improved profitability, reduced leverage, and a stronger capital base, despite a modest dip in revenue. The company’s prudent cost and debt management strategies appear to be driving sustainable earnings growth.
As Nepal’s energy demand continues to expand, Terhathum Power’s focus on financial stability and operational efficiency positions it well for long-term growth within the hydropower sector.