Category: Business | Market | Economy

  • Sanima Mai Hydropower Company Reports 6.02% Increase in Q1 Net Profit and Strategic Investments

    Sanima Mai Hydropower Company Reports 6.02% Increase in Q1 Net Profit and Strategic Investments


    Sanima Mai Hydropower Company Limited (SHPC) has reported a positive performance in the first quarter of the fiscal year 2080/81, demonstrating a 6.02% increase in net profit. The company’s net profit climbed to NPR 24.92 crores, up from NPR 23.5 crores in the same quarter of the previous year.

    This growth was primarily supported by a 2.43% increase in revenue generated from electricity sales, reaching NPR 32.98 crores. Additionally, SHPC managed to significantly reduce both plant operating expenses and financial expenses by 19.33% and 19.59%, respectively, in comparison to the previous year’s quarter.

    Up to the end of Ashwin 2080, the Mai Hydropower Plant (22MW) and Mai Cascade Hydropower Plant (7MW) generated impressive revenues of NPR 24.81 crores and NPR 8.17 crores, respectively.

    Furthermore, SHPC strategically invested a total of NPR 2.74 arba in subsidiary projects, including ventures in Swet Ganga Hydropower and Construction Limited, Sanima Middle Tamor Hydropower Limited, Mathilo Mailun Khola Jalvidhyut Hydropower Limited, Bavari Construction P Limited, and Sanima Jum Hydropower Limited. These investments underscore the company’s commitment to expansion and diversification.

    With a share capital of NPR 3.08 Arba and retained earnings of NPR 1.42 Arba, SHPC demonstrated an annualized Earnings Per Share (EPS) of NPR 32.37 and a net worth per share of NPR 164.17. The company’s Price/Earnings (P/E) ratio stands at 8.83 times.

     

  • Nabil Bank Limited Reports Q1 2080/81 Financials: Resilience Amidst Net Profit Dip

    Nabil Bank Limited Reports Q1 2080/81 Financials: Resilience Amidst Net Profit Dip


    Nabil Bank Limited (NABIL) has unveiled its comprehensive financial report for the initial quarter of the fiscal year 2080/81, offering valuable insights into the bank’s performance.

    During this quarterly review, the bank reported a 6.51% reduction in its net profit. Net profit decreased from NPR 1.57 Arba in the first quarter of FY 2079/80 to NPR 1.46 Arba in the corresponding quarter of FY 2080/81.

    Despite the decline in net profit, NABIL Bank showcased resilience and stability in various operational aspects. In the same quarter, the bank revealed a distributable profit of NPR 3.6 Arba after taking into account PL Appropriation and Regulatory Adjustments.

    NABIL Bank witnessed positive growth in customer deposits, with a notable increase of 4.54%, reaching NPR 4.14 Kharba compared to the previous year. Additionally, loans and advances to customers experienced a 6.27% growth, reaching NPR 3.53 Kharba in comparison to the previous year. The core business income, represented by Net Interest Income, exhibited significant growth, surging by 13.51% to NPR 4.17 Arba compared to the corresponding quarter of the previous year. However, impairment charges increased by 11.90%.

    NABIL’s financial foundation remains robust, with a paid-up capital of NPR 27.05 Arba, accompanied by reserves and surplus totaling NPR 28.39 Arba. Nevertheless, the Non-Performing Loan (NPL) ratio increased to 3.69%, necessitating ongoing attention.

    Regarding per-share performance metrics, the bank reported an annualized earnings per share (EPS) of NPR 21.72, and the Net worth per share was NPR 218.27. Importantly, the company had a Price/Earnings (P/E) multiple of 26.34 times.

    Nabil Bank Limited’s financial performance in the first quarter reveals a mixed scenario, with positive growth in core business income but a decline in net profit. The bank aims to address challenges associated with the increase in Non-Performing Loans while continuing to strengthen its financial reserves and customer-focused services.

  • Nepal Investment Mega Bank (NIMB) Reports Impressive Q1 2080/81 Profits with 33.47% Growth

    Nepal Investment Mega Bank (NIMB) Reports Impressive Q1 2080/81 Profits with 33.47% Growth


    Nepal Investment Mega Bank Limited (NIMB) has recently unveiled its first-quarter report for the fiscal year 2080/81, demonstrating a remarkable 33.47% surge in its net profit. The bank’s profit soared to NPR 1.52 Arba during this period, indicating a positive trend in its financial performance.

    In terms of financial standing, the same period disclosed a total paid-up capital of NPR 34.12 Arba, along with reserves amounting to NPR 25.89 Arba. However, the bank’s retained earnings were in the negative, standing at NPR 85.23 Crores.

    NIMB’s first-quarter report revealed total deposits reaching NPR 3.61 Kharba, while loans and advances to customers amounted to NPR 3.04 Kharba. Notably, the bank experienced a significant 95.40% increase in Net Interest Income, reaching NPR 4.16 Arba. On the flip side, the bank reported personnel expenses of NPR 96.14 Crores and impairment charges of NPR 64.06 Crores.

    During the first quarter, the bank achieved an annualized Earnings Per Share (EPS) of NPR 17.84, and the net worth per share was recorded at NPR 173.37. However, the Non-Performing Loans (NPL) spiked up to 4.83%. It’s important to note that the bank reported a negative distributable profit of NPR 85.32 Crores.

  • Auction of 100,000 Kumari Bank Limited Promoter Shares Commences for Existing Shareholders

    Auction of 100,000 Kumari Bank Limited Promoter Shares Commences for Existing Shareholders


    The current owner of Kumari Bank Limited (KBL) is initiating an auction for the sale of 100,000 units of shares exclusively to its existing promoter shareholders. Durga Prasad Pandey, a promoter of KBL, is the seller, and he is offering these 100,000 promoter shares for auction. Interested parties are invited to participate in this auction, and they have a 35-day window from the date of this notice’s publication, which falls on the 17th of Kartik.

    To participate, prospective investors must submit their bids at either of the following locations: the company’s central office situated at Kumari Capital Limited, located in Kathmandu-01, Naxal, Nagpokhari, or at Kumari Bank Limited itself. If no bids are received from the existing founder shareholders within the specified 35-day timeframe, the shares will be made available for auction to the general public at a later date.

    As of the most recent data available, Kumari Bank Limited (KBL) concluded trading at a share price of Rs. 155 on the previous trading day. In contrast, Kumari Bank Limited’s promoter shares (KBLPO) had a last traded price (LTP) of Rs. 101 on the 18th of October, 2023.

  • Nepal’s OTC Market Witnesses Surge in Trading Activity in Current Fiscal Year

    Nepal’s OTC Market Witnesses Surge in Trading Activity in Current Fiscal Year


    During the initial quarter of the current fiscal year, Nepal’s stock market saw a notable increase in over-the-counter (OTC) trading activity, registering a turnover of Rs. 1.71 Arba. What sets this OTC market apart is that a significant portion of these traded shares, approximately 36,721,120, belonged to companies not listed on the Nepal Stock Exchange (NEPSE) or had been previously delisted.

    The OTC market, also known as the off-board market, operates outside the regular trading hours of NEPSE and offers a platform for the trading of shares of companies that are not listed on NEPSE or have been delisted. Typically, OTC trading takes place from 11 AM to 1 PM on NEPSE, excluding public holidays and Fridays.

    To establish a structured framework for the OTC market, NEPSE introduced the ‘OTC Market Regulations, 2065’ in Jestha, 2065. This laid the groundwork for a distinct trading counter, separate from regular automated trading.

    Engaging in the OTC market entails investors directly submitting their buy and sell orders to the market, which NEPSE registers in sequential order. Buyers in the OTC market are required to provide company-specific purchase orders and deposit 10% of the share amount as collateral. This information, which includes the company’s name, investor details, and pricing, is displayed on the price quoting board. Subsequently, the market adjusts trading based on the received orders and price information, with transactions taking place when prices and quantities align.

    Regarding the clearance process, sellers must present the share certificates to the designated branch for verification within three business days. On the other hand, buyers are obligated to deposit the payment within the same duration at the bank specified by NEPSE. This process ensures the orderly execution of OTC transactions.

  • Multiple Citizens Mutual Funds Report NAV Changes and Financial Updates for Ashwin

    Multiple Citizens Mutual Funds Report NAV Changes and Financial Updates for Ashwin


    The “Citizens Super 30 Mutual Fund (C30MF),” a closed-end fund with a 10-year maturity, has released its Net Asset Value (NAV) report for the month of Ashwin. The NAV in Ashwin stands at Rs. 10.02, a decrease from Rs. 10.25 a month ago. The fund’s total size is Rs. 75.07 Crores, with investments of Rs. 28.40 crore in listed shares and Rs. 31.84 lakhs in non-listed shares. It has allocated Rs. 10 crore to fixed return assets, Rs. 2.25 crore to debentures, and Rs. 33.73 crore to the bank balance.

    However, the fund has reported an increased net loss of Rs. 1.54 crores up to Ashwin, whereas in the previous month, it had a net profit of Rs. 17.69 lakhs.

    Additionally, “Citizens Mutual Fund-1 (CMF1),” a 7-year closed-end mutual fund, has published its monthly report for Ashwin 2080. The NAV has decreased to Rs. 9.40 from Rs. 9.75. The fund, which began with a size of Rs. 82 crores, has investments of Rs. 46.52 crores in listed company shares and Rs. 29.90 lakhs in non-listed shares. It has allocated Rs. 4 crores to fixed return assets, Rs. 16.34 crores to debentures, and Rs. 7.71 crore to the bank balance.

    CMF1 has reported a net loss of Rs. 6.95 crores until Ashwin, whereas in the previous month, it reported a net loss of Rs. 4.02 crores.

    Lastly, “Citizens Mutual Fund-2 (CMF2),” another 7-year closed-end fund offered by Citizens Capital Limited, has released its NAV report for the month of Ashwin, 2080. The NAV has decreased to Rs. 9.16 by the end of Ashwin, down from 9.46 the previous month. The fund started with a size of Rs. 56 crores and invested Rs. 34.92 crores in listed company shares and Rs. 39.93 lakhs in non-listed shares. It allocated Rs. 10.08 crores to debentures and Rs. 3.40 crores to the bank balance.

    CMF2 has reported a net loss of Rs. 4.73 crores until the end of Ashwin, with a net loss of Rs. 3.05 crores in the previous month. It’s worth noting that CMF2 distributed an 8% cash dividend to its unitholders for the financial year 2079/80.

  • Lumbini Bikas Bank Promoter Initiates Auction for 37,319 Shares to Existing Shareholders

    Lumbini Bikas Bank Promoter Initiates Auction for 37,319 Shares to Existing Shareholders


    The current promoter of Lumbini Bikas Bank Limited (LBBL) is initiating an auction for 37,319 units of shares to be exclusively offered to existing promoter shareholders, starting from today. Manlaxmi Thapa, a promoter of LBBL, is overseeing the sale of these 37,319 units of promoter shares to fellow existing promoter shareholders. Interested individuals are invited to participate in this auction, and they have a 35-day window from the date of this notice’s publication, which falls on the 15th of Kartik.

    Potential investors who wish to take part in this auction should submit their bids at the bank’s central office, located in Dillibazar, Kathmandu. In the event that no bids are received from the current founder shareholders within the specified timeframe, these shares will subsequently become available for auction to the general public.

    As of the most recent trading day, LBBL had closed at a share price of Rs. 372.70. Conversely, the last traded price (LTP) for LBBL Promoter Share Auction (LBBLPO) was reported at Rs. 182.00 as of the 4th of June, 2023. This LTP represents the price at which these shares were most recently traded before the initiation of this auction.

  • Kathmandu Metropolitan City Sees Significant Revenue Increase, Collects Rs 1.17 Billion in Two Months

    Kathmandu Metropolitan City Sees Significant Revenue Increase, Collects Rs 1.17 Billion in Two Months


    Over the past two months, the Kathmandu Metropolitan City (KMC) has amassed a revenue of Rs 1.17 billion, marking a significant increase of nearly Rs 230 million compared to the same period in the previous fiscal year. During the corresponding timeframe last year, KMC had collected Rs 934.1 million in revenue. The notable surge in revenue collection has been attributed to the initiation of revenue collection by KMC’s ward offices, as stated by Dhruba Kafle, Chief of the Revenue Department at KMC.

    This growth in revenue has coincided with a notable rise in the number of taxpayers, which can be attributed to all 32 wards under KMC now offering tax collection services. It’s been reported that an increased number of taxpayers are paying property tax and house rent, reflecting a boost in compliance. KMC administers tax collection under nine different categories, including property tax, house rent tax, entertainment tax, and advertisement tax, among others.

    In the current fiscal year, KMC has set an ambitious target to collect Rs 10.41 billion in revenue, highlighting its commitment to continued financial growth and service provision.

  • Kumari Bank Limited Promoters Auction 5,30,000 Shares at Rs. 101 Minimum Rate for Public and Institutions

    Kumari Bank Limited Promoters Auction 5,30,000 Shares at Rs. 101 Minimum Rate for Public and Institutions


    Starting today, the existing promoters of Kumari Bank Limited (KBL) have initiated the auction of 5,30,000 units of shares, making them available to both the general public and institutions. This auction commenced on the 14th of Kartik, 2080, as per the Nepali calendar.

    The minimum auction rate for the 5,30,000 promoter shares of KBL has been set at Rs. 101. Eligibility for participation in the auction extends to both the general public and institutions, with a submission deadline for bids falling on the 20th of Kartik.

    Shareholders interested in bidding for these shares should submit their bids at Kumari Capital Limited, located at Naxal, Nagpokhari, Kathmandu.

    Notably, Kumari Bank Limited (KBL) had closed at a share price of Rs. 156.00 the previous day. In contrast, Kumari Bank Limited Promoter Share Auction (KBLPO) had a last trading price (LTP) of Rs. 101 as of the 18th of October, 2023.

  • Struggles of Newly Listed Companies: SONA and GCIL Face IPO Price Pressures in Secondary Market

    Struggles of Newly Listed Companies: SONA and GCIL Face IPO Price Pressures in Secondary Market


    Sonapur Minerals and Oil Limited (SONA) had its initial public offering (IPO) priced at Rs. 237.58 per share, but after entering the secondary market, it encountered ongoing difficulties. The stock experienced a troubling pattern, with negative circuit breakers triggered for three consecutive days, causing a significant decline in its trading value.

    Currently, SONA’s share price is hovering near its IPO price at Rs. 255.20 per share, reflecting a substantial decrease of approximately 9.98% from its last closing price. Experts in the market speculate that there might be continued selling pressure, which could push the stock into another circuit breaker situation below its initial price.

    SONA has a total of 30,750,500 shares listed on the Nepal Stock Exchange (NEPSE). Among these, 12,165,680 shares were offered to the general public at a premium of Rs. 237.58 (consisting of Rs. 100 face value and Rs. 137.58 premium), while 1,34,520 shares were allocated to project-affected locals at Rs. 225 per share (comprising Rs. 100 face value and Rs. 125 premium).

    The stock began trading at Rs. 350 on Sunday, with an opening range of Rs. 142.01 to Rs. 426.03. However, it hit a 10% negative circuit breaker on both the first day and Monday, resulting in a substantial decline of about 27.08% from its opening price.

    In a similar vein, Ghorahi Cement Industry Limited (GCIL) encountered a comparable situation in the secondary market. The company’s IPO was launched at a premium price of Rs. 435 per share, but in subsequent trading days, its shares consistently traded below the issued price.

    As of the most recent update, GCIL’s shares are trading at Rs. 390, marking a significant decrease of approximately 13.33% from its IPO price. The company has struggled to maintain its value in the secondary market, leading to concerns among investors and market observers about its performance and future prospects.

    The challenges faced by SONA and GCIL in the secondary market highlight the difficulties newly listed companies encounter. Investors and stakeholders are actively evaluating the factors contributing to this decline and considering potential strategies these companies might employ to regain their standing in the market.

  • RSDC Reports 6.65% Growth in Net Profit in First Quarter of Fiscal Year 2080/81

    RSDC Reports 6.65% Growth in Net Profit in First Quarter of Fiscal Year 2080/81


    RSDC Laghubitta Bittiya Sanstha Limited (RSDC) has recently released its first quarterly report for the fiscal year 2080/81, revealing several noteworthy findings. One of the most significant highlights is the impressive growth in net profit, which increased by 6.65%. During the first quarter, RSDC reported a net profit of Rs. 4.07 crores, a marked improvement compared to the Rs. 3.82 crores in the same period of the previous year.

    The report also emphasizes a substantial rise in borrowings, which surged by 9.05% in the first quarter of 2080/81, reaching a total of Rs. 5.90 Arba.

    RSDC reported a substantial reduction of 101.98% in impairment charges. This decline signifies improved asset quality and risk management within the organization. However, the company’s expenses related to personnel increased by 6.32%, reaching Rs. 1.21 crores by the end of Ashwin.

    Net Interest Income, the primary revenue stream for microfinance companies, experienced a decrease of 10.96%, totaling Rs. 6.81 crores in the first quarter of the fiscal year 2080/81. This decline may be reflective of broader economic conditions.

    Although at a relatively low level, the Non-Performing Loan (NPL) ratio increased to 1.49% in the first quarter of the financial year 2080/81.

    RSDC maintains a paid-up capital of Rs. 86.95 crores, with a distributable profit of Rs. 10.13 crores to be distributed to its shareholders, indicating the company’s sound financial position.

    The Net Worth per Share has remained nearly constant at Rs. 126.93.

    It is worth noting that the company has proposed a dividend of 9.0528% (comprising 8.6% bonus shares worth Rs. 7.47 Crores and 0.4528% in cash dividends worth Rs. 39.35 lakhs) for the fiscal year 2079/80.

  • Last Day to Be Eligible for 1: 2 Rights Offering of Ghalemdi Hydro (GHL)

    Last Day to Be Eligible for 1: 2 Rights Offering of Ghalemdi Hydro (GHL)


    Today marks the final day for individuals to qualify for Ghalemdi Hydro Limited’s (GHL) rights offering. The company is set to distribute 200% right shares valued at Rs. 1.10 Arba, achieved by issuing 11,000,000 (1:2) units of right shares to its current shareholders. This move is in line with GHL’s intention to secure at least a 51% stake in the Chujung Khola hydropower project, which is a 63 M.W. PRoR project located in Sankhuwasabha and promoted by Shangrila Urja Pvt. Ltd.

    GHL’s existing paid-up capital stands at Rs. 55 Crores. Upon the execution of the proposed right share issuance, which amounts to 1.10 crore units, the company’s paid-up capital will substantially increase to Rs. 1.65 Arba.

    Muktinath Capital has been designated as the issue manager for this process.

    The book closure date for this offering is set for Kartik 03, 2080. Consequently, shareholders holding shares as of today will be eligible for the rights offering. As of the most recent data available, the last traded price for GHL shares was Rs. 175 per share.