Ankhukhola Hydropower Company's Profit Increases Despite Revenue Decline

Ankhukhola Hydropower Company Limited (AKJCL) has published its unaudited financial report for the second quarter of FY 2081. According to the report, the company’s revenue from electricity sales has decreased, but its net profit has increased.

Revenue Declines

The company generated Rs. 92.1 million in electricity sales revenue as of the end of Poush. This represents a 14.40% decline compared to Rs. 107.6 million during the same period last year.

Net Profit Rises by 22.50%

Despite the decline in revenue, the company’s net profit increased to Rs. 18.6 million, up by 22.50% compared to Rs. 15.2 million in the same period of the previous year. This increase in profit is attributed to a reduction in financial costs, which decreased by 18.21% during the review period.

EPS Declines, While Net Worth and PE Ratio Improve

The Earnings Per Share (EPS) dropped to Rs. 1.87, down from Rs. 3.81 in the previous year, primarily due to an increase in paid-up capital, which now stands at Rs. 2 billion. However, the Net Worth Per Share improved to Rs. 89, up by Rs. 18 from last year’s Rs. 71. Similarly, the Price-to-Earnings (PE) Ratio has improved to 105.08 times.

• Electricity Sales Revenue: Rs. 92.1 million (2081) vs. Rs. 107.6 million (2080)

• Net Profit: Rs. 18.6 million (2081) vs. Rs. 15.2 million (2080)

• EPS: Rs. 1.87 (2081) vs. Rs. 3.81 (2080)

• Net Worth Per Share: Rs. 89 (2081) vs. Rs. 71 (2080)

The company has managed to increase its net profit by reducing financial expenses. However, the decline in revenue and EPS poses challenges for the company’s future. It is expected that the company will focus on increasing electricity sales and improving EPS in the upcoming quarters.