Upper Solu Hydro Reports 84.41% Profit Growth, EPS Rises to Rs. 15.46
Upper Solu Hydro Electric Company Limited (USHEC) has reported an 84.41% year-on-year increase in net profit to Rs. 20.87 crore in Q4 FY 2082/83, supported by lower finance costs despite modest growth in electricity sales revenue.
Upper Solu Hydro Electric Company Limited (USHEC) has published its unaudited financial results for the fourth quarter of FY 2082/83, reporting a significant improvement in net profit compared to the corresponding period of the previous fiscal year. The company posted a net profit of Rs. 20.87 crore by the end of the fiscal year, representing an 84.41% increase from Rs. 11.32 crore recorded during the same period of the previous fiscal year. The growth in profitability came despite only modest growth in electricity sales revenue, mainly due to a significant decline in finance costs. During the review period, the company’s electricity sales revenue increased by 1.97%, while gross profit grew by 2.26%. Meanwhile, the company’s finance costs declined by 29.58%, providing a major boost to its bottom line. The improvement in profitability was also reflected in the company’s earnings per share. EPS increased by Rs. 7.07 to Rs. 15.46 at the end of Q4. The company reported a book value per share of Rs. 119.02, while its P/E ratio stood at 31.62x. Upper Solu Hydro has a paid-up capital of Rs. 1.35 billion, while its other equity stood at Rs. 25.67 crore at the end of the fiscal year. Overall, the company recorded stronger earnings, with the decline in finance costs playing a key role in improving its profitability.