According to the National Hydro Power Company Limited (NHPC), its net profit increased by a significant amount in the first quarter (Q1) of the current fiscal year 2078/79. During this quarter, the profit increased to Rs. 58.74 crores from Rs. 2.37 crores during the corresponding quarter of the previous year.
There is a strong indication that the provision write-back has played a significant role in the massive increase in net profit. An amount slightly more than Rs. 61.72 crores has been reported as a provision write-back by the company. The Lower Indrawati Hydropower Project, developed by the National Hydropower Company, has received approval from the government. The government had issued an invitation for bids in order to provide approval, and because NHPC’s technical and financial proposal was found to be superior, the government granted the company approval. It has resulted in a write-off in the amount of Rs. 61,72,47,430 worth of provision.
The National Hydropower Corporation (NHPC) has collected a total of Rs. 1.35 crores in revenue so far in Q1.
As of the first quarter of the current fiscal year, the company’s reserve fund has grown from a negative Rs 38.10 crore in the previous fiscal year to a positive Rs 23.22 crore in the current fiscal year, with a share capital of Rs 1.38 Arba.
Rs. 42.39 is the earnings per share (non-annualized) of the company. The net worth per share stood at Rs. 116.76, and the price-to-earnings ratio was 10.19 times.