Himalaya Urja Bikas Company Posts NPR 46.2 Million Profit After Last Year’s Loss
Himalaya Urja Bikas Company Limited recorded a net profit of NPR 46.2 million in the fourth quarter, reversing last year’s NPR 158 million loss, driven by a 32.74% rise in total revenue to NPR 423.4 million despite negative reserves.
ShareSanskar | Shrawan 26, 2082
Himalaya Urja Bikas Company Limited has achieved one of the most notable recoveries in Nepal’s hydropower industry, reversing a massive loss into a solid profit through strategic decision-making and disciplined operations. In the latest fiscal year’s fourth quarter, the company posted a net profit of NPR 46.2 million, a dramatic improvement from the NPR 158 million loss recorded in the same period last year. This represents a positive swing of over NPR 204 million, an achievement that reflects not just financial recovery, but a complete transformation in business performance.
The turnaround has been powered by a strong 32.74% increase in revenue, with total earnings rising to NPR 423.4 million. This growth demonstrates the company’s ability to tap into Nepal’s growing electricity demand, enhance plant efficiency, and optimize its power purchase agreements. It signals that Himalaya Urja is not just recovering but positioning itself as a competitive player in the hydropower market.
Operational results further underline the scale of the recovery. Despite facing heavy expenses, including NPR 181 million in finance costs and NPR 136.2 million in depreciation, the company generated an operating profit of NPR 363.5 million. Careful management of administrative expenses at NPR 51.5 million and royalty payments of NPR 8.32 million shows a focus on cost control while meeting regulatory obligations.
The balance sheet presents a mixed picture: reserves remain negative at NPR 177.8 million due to past losses, yet current assets of NPR 205.8 million against liabilities of just NPR 13.7 million give the company a strong liquidity position. A liquidity ratio of 14.97% indicates it has more than enough short-term resources to meet obligations. In terms of investor metrics, an earnings per share (EPS) of NPR 2.34, net worth per share of NPR 91.02, and total asset value per share of NPR 182.03 point to solid underlying value.
Himalaya Urja’s turnaround stands as a powerful example of resilience in the face of adversity. It proves that with the right operational strategy, effective cost management, and favorable market conditions, even struggling hydropower companies can achieve sustained profitability. This performance not only boosts investor confidence but also highlights the potential for long-term value creation in Nepal’s energy sector.