Higher Operating & Interest Expenses Led to Decline in Net Profit by 99.07% for Ridi Power in Q3; Company to Issue 50% Right Shares
Fri, May 12, 2023 10:47 AM on Latest, Financial Analysis, Stock Market,
Ridi Power Company Limited (RIDI) has posted net profit decline of 99.07% in the third quarter (Q3) of the current FY 2079/80. The profit decreased to Rs. 44.89 Lakhs in this quarter from Rs. 48.38 crores in the corresponding quarter of the previous year.
The company reported a total income of Rs. 26.96 crores in this quarter; which has decreased by 62.21% 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.
The non-operating expenses i.e financial expenses and depreciation have increased by huge margin of 256.32% to Rs. 20.85 Crores in this quarter. The administrative expenses have also increased by 220.37% in this quarter.
Its reserve fund stands at Rs. 2.15 crores with share capital at Rs 1.53 Arba. The capital reserve of the company stands at Rs. 6.69 Crores.
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 0.39, net worth per share at Rs 105.71 and P/E ratio stood at 812.43 times.
Major Highlights:
| Particulars (In Rs '000) | Ridi Power Company | ||
|---|---|---|---|
| Q3 2079/80 | Q3 2078/79 | Difference | |
| Paid Up Capital | 1,548,901.20 | 585,558.00 | 164.52% |
| Capital Reserve | 66,908.23 | ||
| Reserve Fund | 21,533.14 | 484,136.43 | -95.55% |
| Property, Plant & Equipment (NET) | 2,894,707.51 | 1,094,291.29 | 164.53% |
| Investment | 355,681.20 | 219,119.11 | 62.32% |
| Total Income (Power Sales) | 269,616.60 | 713,473.69 | -62.21% |
| Administrative Expenses | 20,875.92 | 6,516.29 | 220.37% |
| Non-Operating Expenses | 208,501.24 | 58,514.36 | 256.32% |
| Net Profit | 4,489.81 | 483,840.88 | -99.07% |
| EPS (In Rs.) | 0.39 | 110.17 | -99.65% |
| Net Worth per Share (In Rs.) | 105.71 | 182.68 | -42.13% |
| Qtr end PE Ratio (times) | 812.43 | - | - |
| Qtr End Market Price | 314 | - | - |
