(UPCL) Universal Power Company Q3 Report: Net Profit Jumps 42%, Revenue and Earnings Strengthen Amid Rising Costs

Kathmandu – Universal Power Company Limited has reported a solid financial performance in the third quarter of fiscal year 2081/82, showcasing notable growth in profitability and earnings, despite a moderate increase in operational costs.

The company’s net profit soared by 42.36%, reaching NPR 106.41 million, up from NPR 74.75 million in the same quarter of the previous fiscal year. This profit surge is primarily attributed to a steady rise in revenue and efficient cost control in non-core areas.

Total revenue grew by 2.95%, touching NPR 261.4 million, compared to NPR 253.9 million a year ago. While revenue growth appears modest, it’s significant in the context of the hydroelectric sector, where expansion is capital-intensive. However, the cost of sales rose sharply by 20.62%, reaching NPR 35.24 million, indicating increased production or maintenance-related expenses. Administrative expenses also saw a 5.28% rise, now totaling NPR 14.7 million.

One of the strongest positives is the 74.73% increase in retained earnings, which jumped to NPR 252.79 million from NPR 144.68 million last year. This implies that the company has managed to conserve more profit internally, strengthening its capital reserve for future investments.

On the liabilities side, borrowings decreased by 3.47%, from NPR 1.45 billion to NPR 1.39 billion, showing the company’s attempt to reduce debt burden and improve financial sustainability.

The Earnings Per Share (EPS) improved significantly, rising to Rs. 6.22, up from Rs. 4.37, while Net Worth Per Shareclimbed to Rs. 111.09, reflecting a stronger financial position for shareholders. The company’s Q3-end market pricestood at Rs. 306.67, translating into a Price-to-Earnings (PE) Ratio of 49.28, signaling high investor expectations and a premium valuation.