Nepali Hydropower Giant Api Power’s Q3 Net Profit Takes a Dip Despite Revenue Surge
Api Power Company (API), a leading player in Nepal’s hydropower sector, has released its financial results for the third quarter of the current fiscal year. Despite a significant increase in revenue, the company reported a decline in net profit compared to the corresponding period of the previous fiscal year.
According to the report, Api Power’s net profit fell by 10.93 percent during the review period. The company recorded a net profit of Rs. 44.8 million, a decrease from the Rs. 50.3 million reported in the same quarter of the previous fiscal year.
However, the company’s sales income witnessed a substantial increase, rising by Rs. 582.3 million to reach Rs. 951.8 million, compared to Rs. 369.5 million in the corresponding period last year. This growth in revenue can be attributed to various factors, including increased demand for electricity and the company’s efforts to expand its operations.
Despite the rise in income, Api Power’s net profit declined due to an increase in expenses. During the review period, the company’s total expenses rose to Rs. 786.6 million, which included administrative expenses of Rs. 30.7 million, financial expenses of Rs. 469.3 million, and depreciation expenses of Rs. 285.3 million.
The company maintained an earnings per share (EPS) of Rs. 4.25 and a net worth per share of Rs. 105.02, reflecting its financial strength and potential for future growth.
Api Power, with a paid-up capital of Rs. 5.78 billion, plays a significant role in Nepal’s hydropower sector, which is crucial for the country’s economic development and energy security.
While the decline in net profit may raise concerns among investors and stakeholders, the company’s substantial revenue growth and strong financial position suggest that it is well-positioned to navigate challenges and capitalize on opportunities in the dynamic hydropower industry.
