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Upper Solu Hydroelectric Company Limited has reported a significant increase in net profit during the fourth quarter of the last fiscal year. According to the company’s unaudited financial statements, its net profit increased by 84.41 percent compared to the same period of the previous fiscal year.

The company earned a net profit of Rs. 20.87 million by the end of Chaitra (mid-April) of the last fiscal year, compared to Rs. 11.32 million during the corresponding period of the previous fiscal year.

The rise in net profit was mainly attributed to a slight increase in electricity sales revenue and a significant reduction in financial expenses. During the review period, the company’s electricity sales revenue increased by 1.97 percent, while its gross profit rose by 2.26 percent.

Meanwhile, the company’s financial expenses declined by 29.58 percent during the period. The reduction in financial expenses appears to have made the largest contribution to the growth in net profit.

Along with the increase in profit, the company’s earnings per share (EPS) also improved. During the review period, EPS increased by Rs. 7.07 to reach Rs. 15.46.

The company’s net worth per share stood at Rs. 119.02, while its price-to-earnings (P/E) ratio stood at 31.62 times.

The company has a paid-up capital of Rs. 1.35 billion. Similarly, its other equity stood at Rs. 256.7 million, according to the financial statements.

Although electricity sales revenue recorded only a modest increase, the substantial decline in financial expenses led to a significant improvement in profitability, indicating a positive impact on the company’s overall financial position.

Jalasarokar