Singati Hydro Energy (SHEL), a prominent player in Nepal’s hydropower sector, has released its third-quarter report for the current fiscal year, showcasing an improvement in its financial performance. The report highlights a notable decline in the company’s net loss, accompanied by an increase in sales and a reduction in expenses.
According to the report, SHEL incurred a net loss of Rs 32.1 million during the review period, a significant improvement compared to the net loss of Rs 93.2 million reported during the corresponding period of the previous fiscal year. This narrowing of losses can be attributed to the company’s efforts to boost its sales and streamline its expenses.
During the review period, SHEL’s sales increased by 3.32%, reaching Rs 537.2 million, up from the previous figure of Rs 519.9 million. This rise in sales figures is a positive sign, indicating the company’s ability to capitalize on market opportunities and enhance its revenue streams.
Complementing the sales growth, SHEL’s total income during the review period increased by 3.34%, while its total expenses declined by 7.33%. This favorable combination of increased revenues and reduced costs contributed significantly to the company’s improved financial performance.
To maintain its robust financial position, SHEL recently issued 100% right shares, resulting in a paid-up capital of Rs 2.90 billion. Additionally, the company boasts a share premium fund of Rs 251.1 million, further strengthening its financial reserves.
Despite the positive developments, the company’s financial metrics reflect the challenges it has faced. SHEL reported a Loss per Share (LPS) of Rs 1.45 and a Net Worth per Share of Rs 100.71, indicating the impact of its past losses on shareholder value.
As Nepal continues to prioritize the development of its hydropower potential, SHEL’s improving financial performance is a welcome sign for the industry. The company’s ability to increase sales, control expenses, and maintain a strong financial foundation positions it well to navigate the competitive hydropower market and capitalize on emerging opportunities.
However, sustained efforts will be required to build upon this positive momentum and achieve consistent profitability. SHEL’s management will need to remain vigilant, implementing strategic initiatives to further enhance operational efficiency, optimize costs, and explore avenues for revenue diversification.
