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Upper Tamakoshi Hydropower Ltd.

Unaudited 3rd Quarter Financial Report

(As of Chaitra 2081)

Overview

This report presents the unaudited financial performance and position of Upper Tamakoshi Hydropower Ltd. for the 3rd Quarter ending Chaitra 2081. It aims to provide a clear and concise summary of the company's financial health and operational results, highlighting key trends and important data points for easy understanding.

Financial Position Summary (Balance Sheet)

A snapshot of the company's assets, liabilities, and equity at different points in time. All figures are in NRs.

Particulars Chaitra 2081 (Unaudited) Chaitra 2080 (Unaudited) Chaitra 2079 (Audited)
Total Assets 72,088,090,304.42 79,318,527,196.88 81,311,065,279.42
Total Equity & Liabilities 72,088,090,304.42 79,318,527,196.88 81,311,065,279.42

Key Observation:

There has been a decrease in Total Assets and Total Equity & Liabilities over the past two years, from NRs. 81.31 billion in Chaitra 2079 to NRs. 72.09 billion in Chaitra 2081. This indicates a contraction in the company's overall financial scale.

Profit or Loss Summary (Income Statement)

Summary of revenues and expenses, showing the company's profitability. All figures are in NRs.

Particulars Current Quarter (2081) Previous Quarter (2080) Year to Date (2081) Previous Year to Date (2080)
Operating Income (Sales of Electricity) 2,059,203,892.40 2,021,291,727.60 6,233,767,112.50 6,186,053,003.50
Net Profit Before Tax 967,442,109.14 1,029,955,640.22 2,906,066,353.18 3,005,627,673.71
Net Profit for the Period 799,067,419.14 847,562,716.42 2,422,965,496.18 2,504,642,887.71

Key Observation:

  • Operating Income shows a slight increase in both the current quarter and year-to-date (2081) compared to the previous year (2080).
  • However, Net Profit Before Tax and Net Profit for the Period have decreased in both the current quarter and year-to-date (2081) compared to the previous year (2080). This suggests a potential increase in expenses or other factors impacting profitability despite revenue growth.

Key Highlights & Trends

Financial Position

The company's total assets have declined by approximately NRs. 7.23 billion from Chaitra 2080 (NRs. 79.31 billion) to Chaitra 2081 (NRs. 72.09 billion). This trend continues from Chaitra 2079 (NRs. 81.31 billion), indicating a consistent reduction in the balance sheet size.

Revenue Performance

Despite the asset contraction, Operating Income from electricity sales shows resilience. The current quarter's income is slightly up compared to the previous quarter (NRs. 2.05 billion vs. NRs. 2.02 billion). Year-to-date income also saw a modest increase (NRs. 6.23 billion vs. NRs. 6.18 billion).

Profitability Concerns

A significant point of attention is the decline in net profitability. Net Profit for the current quarter dropped to NRs. 799.07 million from NRs. 847.56 million in the previous year's quarter. Similarly, year-to-date Net Profit decreased from NRs. 2.50 billion (2080) to NRs. 2.42 billion (2081).

Future Outlook

While revenue generation remains stable, the decreasing profitability suggests a need to analyze cost structures and operational efficiencies. Further investigation into specific expense categories is recommended to understand the drivers behind the reduced net profit.

Conclusion

Upper Tamakoshi Hydropower Ltd. shows stable revenue generation but faces challenges with decreasing assets and profitability. Continuous monitoring and strategic adjustments will be crucial for improving its financial performance going forward.