Himalayan Reinsurance's Profit Increases: EPS Declines

Himalayan Reinsurance, one of Nepal’s leading reinsurance companies, has reported a 2.3% increase in net profit for the second quarter of the current fiscal year. The company's financial growth has been driven by increased premium income and improved risk management. However, the rise in paid-up capital has negatively impacted Earnings Per Share (EPS).

✅ Net Profit

• NPR 616.9 million (compared to NPR 602.7 million last year)

✅ Net Premium Income

• NPR 2.39 billion (up from NPR 1.99 billion)

✅ Total Revenue

• NPR 3.04 billion (compared to NPR 2.46 billion)

✅ Total Expenses Increase

• NPR 2.02 billion (up from NPR 1.60 billion)

Decline in Earnings Per Share (EPS)

• Previous EPS: NPR 12.05

• Current EPS: NPR 11.86

• Reason: Increase in paid-up capital from NPR 10 billion to NPR 10.40 billion

Other Key Indicators

📌 Net Worth Per Share: NPR 161.57
📌 Current Market Price: NPR 853

While the company has demonstrated strong financial performance, the rise in paid-up capital has put pressure on EPS. Investors may now focus on how the company plans to manage dividends and future profitability in the coming quarters. With a high market price, Himalayan Reinsurance’s future strategies will play a crucial role in maintaining investor confidence.