Higher Operating & Interest Expenses Led to Decline in Net Profit by 95.81% for Ridi Power; Company to Issue 50% Right Shares
Thu, Feb 9, 2023 11:14 AM on Latest, Financial Analysis, Stock Market,
Ridi Power Company Limited (RIDI) has posted net profit decline of 95.81% in the second quarter (Q2) of the current FY 2079/80. The profit decreased to Rs. 1.96 crores in this quarter from Rs. 46.98 crores in the corresponding quarter of the previous year.
The company reported a total income of Rs. 18.92 crores in this quarter; which has decreased by 71.94% compared to the corresponding quarter of the previous year.
As per the management, there is no significant change in the balance, income, and liquidity of the organization during this quarter. The activities are done according to the business plan of the company. During this quarter period, as the interest of the company increased, there is a decrease in the income and it is expected that the profit will improve when the interest expense decreases in the coming days and the Income will improve from the next quarter.
Its reserve fund stands at Rs. 50.25 crores with share capital at Rs 1.10 Arba. The company also proposed 40% bonus shares worth Rs. 44,25,43,200 and a 2.10% cash dividend (including tax) worth Rs 2,32,33,518 for the Fiscal Year 2078/79. These bonus dividends have been capitalized by the company and the enhanced paid-up capital stands at Rs. 1.54 Arba.
Furthermore, the company has also proposed to issue 77,44,506 units of rights shares (1: 0.50 ratio right shares) for shareholders. This will be issued from the paid-up capital of Rs. 1.54 Arba upon approval from SEBON.
Its annualized earning per share stands at Rs 3.56, net worth per share at Rs 145.43 and P/E ratio stood at 153.94 times.
Major Highlights:
| Particulars (In Rs '000) | Ridi Power Company | ||
| Q2 2079/80 | Q2 2078/79 | Difference | |
| Paid Up Capital | 1,106,358.00 | 585,558.00 | 88.94% |
| Capital Reserve | 66,908.23 | ||
| Reserve Fund | 502,570.63 | 470,161.17 | 6.89% |
| Property, Plant & Equipment (NET) | 2,923,328.94 | 1,106,230.48 | 164.26% |
| Total Income (Power Sales) | 189,273.98 | 674,472.71 | -71.94% |
| Total Operating Expenses | 29,109.48 | 12,993.39 | 124.03% |
| Total Non-Operating Expenses | 135,337.83 | 39,512.95 | 242.52% |
| Net Profit | 19,692.25 | 469,865.62 | -95.81% |
| EPS (In Rs.) | 3.56 | 160.48 | -97.78% |
| Net Worth per Share (In Rs.) | 145.43 | 180.29 | -19.34% |
| Qtr end PE Ratio (times) | 153.94 | - | - |
| Qtr End Market Price | 548 | - | - |
