People’s Power Ltd Reports Strong Q1 Growth with Sharp Profit Recovery and Improved Financial Stability
Author
NEPSE TRADING
People’s Power Ltd has published its unaudited financial results for the first quarter of FY 2082/83, revealing a significant improvement in profitability, liquidity, and overall financial performance. The company, which began commercial electricity generation on Mangsir 12, 2079, appears to be transitioning into a more stable and sustainable operational phase, supported by rising revenue stability and improved cost management.
Revenue Remains Stable Despite Seasonal Decline
The company earned NPR 31.75 million in revenue during the first quarter. While this is lower than the previous quarter’s NPR 96.32 million—mainly because hydropower output naturally peaks during monsoon months—the revenue is higher than the same period last year (NPR 30.14 million).
This shows that even with reduced water flow during the dry season, People’s Power has maintained stable electricity production and continuous energy dispatch to the national grid. The consistency in revenue indicates that the plant has entered a stable operational rhythm after completing its construction phase.
Net Profit Jumps Significantly, Driven by Reduced Finance Costs
A major highlight of the report is the sharp rise in net profit to NPR 12.60 million, compared to only NPR 1.15 million in the previous quarter. This remarkable improvement is largely due to a massive reduction in finance costs, which fell from NPR 26.25 million to NPR 2.89 million this quarter.
This drop in financial expense indicates:
Successful loan repayment or restructuring
Lower interest burden
Improved cash flow management
Administrative expenses also remained controlled, contributing further to profitability. The company recorded a gross profit of NPR 27.81 million, demonstrating efficient generation and operational cost control. Overall, the company’s profit jump reflects maturing operations and healthier financial discipline.
Significant Growth in Total Assets and Exceptionally Strong Liquidity
People’s Power’s total assets rose to NPR 1.009 billion, up from NPR 921 million last quarter—an increase of nearly NPR 88 million. The biggest and most positive change is found in the cash and bank balance, which surged from NPR 3.49 million to NPR 98.36 million.
This sharp increase in cash reflects:
Timely payment of electricity sales by NEA
Lower operational expenses
Reduced interest and loan repayment pressure
Trade receivables also climbed to NPR 20.83 million, indicating regular and stable revenue flow. Likewise, the company continues to maintain a major portion of its assets in intangible project infrastructure worth NPR 889.91 million.
A liquidity ratio of 56.32 shows that the company is in an exceptionally strong short-term financial position, capable of meeting all current obligations comfortably.
Equity Strengthens Through Capital Increase and Share Premium Addition
The company’s total equity rose to NPR 1.007 billion, up sharply from NPR 613 million in the previous quarter. This improvement is primarily due to:
An increase in share capital from NPR 632 million to NPR 948.90 million
Addition of a new share premium worth NPR 65.47 million
Reduction in negative reserves
These changes significantly strengthen the company’s capital base, improve solvency, and increase its ability to handle future financial commitments and expansions.
Liabilities Drop Sharply, Indicating Improved Debt Position
The company’s current liabilities decreased dramatically from NPR 26.06 million to just NPR 2.12 million, reflecting substantial repayment or removal of short-term debt obligations. Notably, the “current portion of long-term borrowings” has dropped to zero this quarter, suggesting that immediate debt repayment responsibilities have been fulfilled or rescheduled.
This indicates:
Better cash management
Reduced financial risk
Lower burden of interest payments in coming quarters
Overall, the reduction in liabilities contributes significantly to the company’s stronger bottom line.
Share Market Activity Shows High Investor Interest
People’s Power Ltd has attracted strong investor participation in the secondary market during Q1. The company recorded:
Highest trading price: NPR 428.4
Lowest trading price: NPR 278
Last trading price: NPR 283.5
Total trading days: 51
Total traded shares: 1,613,254
Total turnover: NPR 551 million
Such high trading volume reflects growing investor interest, driven by improved financials, stable cash flow, and decreasing debt.
Key Financial Ratios Confirm Strength and Stability
The company’s financial indicators for the quarter include:
Annualized EPS: 5.32
Net worth per share: NPR 106.20
Book value per share: NPR 106.43
Liquidity ratio: 56.32
These ratios confirm that People’s Power is becoming more financially stable, profitable, and resilient.
Operational Challenges Acknowledged but Well-Managed
As with all hydropower companies in Nepal, People’s Power faces challenges such as floods, landslides, and seasonal reductions in water flow. The company notes that these natural uncertainties will always pose a risk to generation capacity. However, with strong liquidity, declining liabilities, and a stable revenue model, the company is well-positioned to navigate these challenges.
Strong Governance and Full Transparency Reaffirmed
The company reported no legal disputes and reiterated its commitment to strong corporate governance. It stated that policies are regularly updated, regulatory guidelines are fully followed, and audit recommendations are properly implemented.
The CEO personally declared that all information disclosed in the report is accurate, factual, and complete—further reinforcing investor trust.
Overall, the first-quarter report reveals that People’s Power Ltd is emerging as a strong and stable hydropower operator. With rising profit, reduced debt burden, strong cash reserves, and high investor confidence, the company is well-positioned for continued growth throughout the fiscal year.
If performance trends continue, People’s Power is expected to deliver improved returns and sustained financial stability in upcoming quarters.
