Samling Power Company (SPC), a prominent player in Nepal’s hydropower sector, has released its third-quarter report for the current fiscal year, revealing a challenging financial performance. The report highlights a decline in sales and a widening net loss, reflecting the company’s struggles amidst the prevailing market conditions.
According to the report, SPC’s sales during the review period stood at Rs 195.5 million, marking a 5.04% decrease compared to Rs 205.9 million recorded during the corresponding period of the previous fiscal year. This decline in sales figures is a cause for concern, as it indicates a potential slowdown in the company’s operations and revenue streams.
The company’s financial woes were further compounded by an increase in its net loss. During the review period, SPC’s net loss rose to Rs 19.9 million, a significant uptick from the earlier loss of Rs 8.5 million. This widening loss reflects the company’s challenges in managing costs and maintaining profitability in the face of declining sales.
The financial report also revealed other concerning figures. SPC’s total profit declined by 6%, while its operating profit fell by 8.27%. Additionally, the company’s financial expenses increased by 0.76%, adding further strain to its bottom line.
The company’s lackluster performance was reflected in its key financial metrics. SPC reported a Loss per Share (LPS) of Rs 5.31 and a Net Worth per Share of Rs 108.84, highlighting the impact of the company’s struggles on shareholder value.
Despite the challenges, SPC maintains a solid financial foundation with a paid-up capital of Rs 500 million and a reserve fund of Rs 44.1 million. However, the company will need to address the underlying issues contributing to its declining sales and mounting losses to regain its footing in the competitive hydropower market.
As Nepal continues to prioritize the development of its hydropower potential, SPC’s performance serves as a reminder of the challenges faced by industry players. Effective strategies, cost optimization measures, and a keen focus on operational efficiency will be crucial for the company to navigate through these turbulent times and restore its financial health.
