Salt Trading Corporation Limited (STC) Revenue Declines
Author
Nepse trading
Salt Trading Corporation Limited (STC) has published its unaudited financial report for the second quarter of the current fiscal year 2080/81. According to the report, the company's revenue has seen a significant decline compared to the same period last year. Along with the decline in revenue, the company's net profit has also decreased.
Revenue Declines by 31.55%
As of the first six months of the current fiscal year, the company's total revenue stands at Rs. 4.58 billion. This marks a 31.55% decrease compared to the same period in the previous fiscal year.
In the same period last year, the company had reported a total revenue of Rs. 6.69 billion.
This significant drop in revenue could have a major impact on the company's overall financial performance.
Net Profit Falls by 1.26%
With declining revenue, the company's net profit has also dropped slightly.
By the end of the second quarter of the current fiscal year, the company recorded a net profit of Rs. 353 million.
In the same period last year, the net profit was Rs. 358 million.
This translates to a 1.26% decline in net profit.
However, due to a substantial 87.27% reduction in financial expenses, the decline in net profit has been relatively minor compared to the drop in revenue.
Earnings Per Share (EPS) Drops
As net profit declined, the company's Earnings Per Share (EPS) also took a hit.
In the second quarter of the previous fiscal year, the EPS stood at Rs. 25.68.
By the second quarter of the current fiscal year, it has dropped to Rs. 22.05.
This represents a decline of Rs. 3.63 per share.
Net Worth Per Share & Price-to-Earnings (P/E) Ratio
Net Worth Per Share: Rs. 384.30
P/E Ratio: 243.89 times
The high P/E ratio suggests that the company's stock is currently expensive in the market.
Paid-up Capital & Reserve Fund
The company's paid-up capital stands at Rs. 320.7 million.
The company has a reserve fund of Rs. 1.36 billion.
This indicates that the company has a strong financial foundation in the long term.
Salt Trading Corporation Limited's financial report for the second quarter of the current fiscal year shows a notable decline in revenue. However, the significant reduction in financial expenses has prevented a major decline in net profit. Despite the drop in EPS, the company's net worth remains strong. Investors will closely monitor the company's performance in the coming quarters to assess whether there will be any improvement in its financial situation.
