AHPC Witnesses Decline in Net Profits Attributed to Flood-damage in Company-managed Hydropower Projects in Q4
Tue, Aug 15, 2023 8:12 AM on Financial Analysis, Latest,
Arun Valley Hydropower Development Company Limited (AHPC) has published its fourth-quarter report for the recently wrapped financial year 2079-80, with a significant decline in its Net Profit by 32.20 percent. As of FY 2079-80, the company has profited only Rs. 5.84 crores contrary to earning Rs. 8.61 crores until the corresponding quarter of the previous financial year 2078-79.
With a decline in Net profits, the Earnings per Share (EPS) of the company has declined as well to stand at Rs. 3.13 only, alongside a just above-par Net worth per Share of Rs. 103.38.
The Price per Earnings (PE) ratio of the hydropower company is 81.52 times as of FY 2079-80’s end.
AHPC maintains Rs. 1.86 Arba in paid-up capital and has Rs. 6.31 crores in other equity as of FY 2079-80’s end.
The Piluwa Khola Jalbidhyut Project (3 MW) and Kabeli 'B'-1 Cascade Hydropower Project (9.94 MW) have been affected by flooding, resulting in the current halt of commercial production. Repair and maintenance work is underway at the projects to resume electricity production. Similarly, the Department of Electricity Development has granted approval for electricity production for the company-managed Upper Kabeli-2 Hydropower Project (15 MW) and Budum Khola Hydropower Project (14.50 MW). Following this, an application has been submitted to NEA for a PPA agreement.
Earlier, the meeting of the board of directors held on Baisakh 06 had proposed to issue right shares in the ratio of 1:1 i.e., 18,679,626 right shares of Rs. 100 par value worth Rs 1.86 Arba so that the company can invest 50% of the issued right shares amount i.e., 93,39,813 unit right shares worth Rs 93.39 crore in the Likhu Khola Hydropower Project (30 MW) promoted by PK Hydropower Pvt. Ltd. The remaining 93,39,813 unit shares worth Rs 93.39 crore will be used in paying off the loan taken by the company for the Kabeli 'B'-1 Cascade Hydropower Project in Panchthar.
The decision has been approved by Electricity Regulatory Commission (ERC). However, the company will issue the right shares to its shareholders only after the approval of SEBON.
Major Financial Highlights:
Particulars (In Rs '000) | Arun Valley Hydropower | ||
---|---|---|---|
Q4 2079/80 | Q4 2078/79 | Difference | |
Paid Up Capital | 1,867,962.60 | 1,729,595.00 | 8.00% |
Other Equity | 63,187.12 | 153,361.55 | -58.80% |
Property, Plant & Equipment (Net) | 2,496,571.38 | 2,457,661.96 | 1.58% |
Revenue from Operation | 262,754.92 | 139,098.46 | 88.90% |
Administrative Expenses | 6,251.08 | 3,528.32 | 77.17% |
Financial Cost | 170,303.60 | 40,536.27 | 320.13% |
Net Profit | 58,431.26 | 86,183.49 | -32.20% |
EPS (In Rs.) | 3.13 | 4.98 | -37.22% |
Net Worth per Share (In Rs.) | 103.38 | 108.87 | -5.04% |
Qtr end PE Ratio (times) | 81.52 | - | - |
Qtr End Market Price (In Rs.) | 255 | - | - |