Sahas Urja Net Profit Decreased By 37.26% In Q2; 86 MW project Is In Final Phase of Completion

Sahas Urja Limited has reported a 37.26 percent decline in net profit for the second quarter of the current fiscal year 2079/80.

Publishing the unaudited financial report for the second quarter today, the hydropower company has stated its net profit has decreased to Rs 21.59 crore in the second quarter of the fiscal year 2079/80 from Rs 34.42 crore in the corresponding quarter of the previous fiscal year 2078/79.

The share capital remains at Rs. 3.50 arba, Whereas, Rs 2.31 arba in the Reserves. Its annualized Earning per Share (EPS) stands at Rs. 12.34, its net worth per share stand is at Rs 166.13 and the company traded at a P/E multiple of 46.02 times.

The company is in the phase of constructing Solu Khola (Dudh Koshi) Hydropower Project of 86 MW. As Solu Khola is in the process of internal testing, the income from electricity sales has not started and the other income mentioned in the financial statement is unreal as it is generated by drawing on the principle of IFRIC 12: Service Concession Arrangement according to the NFRS system.

The internal examination of Solu Khola is in progress and the examination carried out so far has been successful. The management of the company is committed to moving the company forward according to the appropriate and necessary requirements while working in the interest of all the shareholders.

As per the ICRA Nepal Rating the per MW budgeted cost of the 86-MW project is NPR 171 million per MW despite the recent ~24% cost escalation over the original budgeted cost (revised estimated project cost is NPR 14.69 billion as compared to the original cost estimate of NPR 11.86 billion).

During this quarter, the company has not announced any decisions or information indicating an unusual rise or fall in the market price. The management of this organization is unbiased with regard to the share price and transaction as they are defined by the market, as well as the facts and information that must be submitted to associated agencies in accordance with the applicable law.

Click here for Q2 report

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