Despite the halt in loan flows, high base rates, and increasing credit costs, year-end financials in microfinance might show unexpected improvements. However, it’s crucial to remain vigilant as these changes could be due to creative bookkeeping in response to these difficult circumstances rather than a genuine financial recovery.
View on r/NepalStock by Mindless-Papaya-1922
The fiscal year 2079/80 concluded with the NEPSE Index closing at 2,097.09 on the last trading day. This marked a gain of 12.16 points compared to the previous trading day’s closing value. Throughout the fiscal year, the NEPSE index exhibited volatility, as it rebounded by 281.95 points from a recent low of 1,815.14 to its closing value of 2,097.09.
Despite this recovery, the NEPSE index remains 34.44% below its all-time high, which was recorded on August 18, 2021. This indicates that there has been a significant decline from the peak level reached. The fluctuations in the NEPSE index reflect the changing market conditions and investor sentiment during the fiscal year.
To summarize, the NEPSE index closed at 2,097.09 on the final trading day of the fiscal year 2079/80, showing a modest gain of 12.16 points. Although the index experienced volatility, recovering from a recent low, it is still significantly lower than its all-time high, reflecting a decrease of 34.44%. These fluctuations highlight the dynamic nature of the market and the challenges faced by investors during the fiscal year.
Balephi Hydropower Limited (BHL) has released its third-quarter report for the current fiscal year, revealing a significant net loss of Rs. 23.72 crores. In comparison, during the third quarter of the previous fiscal year 2078/79, the company had reported a net loss of Rs. 6.06 lakhs.
During the third quarter of the current fiscal year, BHL experienced a substantial increase in administrative expenses, reaching Rs. 25.59 lakhs. Additionally, the company had to bear financial costs amounting to Rs. 31.19 crores up to the third quarter of FY 079/80.
With an Earnings per Share (EPS) of Rs. -17.30 and a below-average net worth of Rs. 81.93, BHL faces financial challenges. However, the company managed to generate revenue of Rs. 35.93 crores from the sale of power until the end of the third quarter of the ongoing fiscal year.
According to the management analysis, BHL incurred significant penalties from the Nepal Electricity Authority (NEA) for surpassing the Required Commercial Operation Date (RCOD) as outlined in the Power Purchase Agreement (PPA).
BHL is optimistic that once the RCOD issue is resolved, the company will generate sufficient cash revenue to meet its financial and operational obligations. To improve its cash flow, the company plans to issue right shares.
In a meeting held on Falgun 12, 2079, the board of directors of BHL decided to propose the issuance of rights shares in a ratio of 1:0.5 in the next annual general meeting. The proposal aims to utilize the then-paid-up capital of Rs. 1.827 Arba, resulting in an enhanced paid-up capital of Rs. 2.74 Arba after the 50% right issue.
At the end of the third quarter of this fiscal year, BHL’s closing share price stood at Rs. 321. Additionally, the company successfully increased its paid-up capital by 10.50%, amounting to Rs. 1.82 Arba.