Ankhukhola Hydropower Company Limited (AKJCL) has reported a sharp improvement in profitability in the fourth quarter of the last fiscal year with stronger electricity sales and lower financial expenses supporting earnings growth.

According to the company's unaudited financial report, Ankhukhola Hydropower generated Rs. 22.42 crore in electricity sales revenue by the end of Ashadh. This represents a 32.17% increase from Rs. 16.96 crore recorded during the corresponding period of the previous fiscal year.

The increase in electricity sales was accompanied by an even stronger rise in net profit. The company reported a net profit of Rs. 6.35 crore, up 54.97% from the previous fiscal year. Profit therefore grew significantly faster than electricity sales during the review period.

A key factor behind the stronger bottom line was the reduction in financing costs. Ankhukhola Hydropower's financial expenses declined 22.66% compared with the previous fiscal year. The lower financial burden allowed a larger portion of the company's electricity-related income to flow through to the bottom line.

The improvement in profitability was also reflected in earnings per share. The company's EPS increased by Rs. 1.13 to Rs. 3.18 during the review period, indicating stronger earnings generated for shareholders compared with the previous fiscal year.

At the end of the fourth quarter, Ankhukhola Hydropower's net worth per share stood at Rs. 94. Its reported share valuation implied a P/E ratio of 106 times based on the company's earnings.

The company has a paid-up capital of Rs. 2 billion. However, its other equity remained negative at approximately Rs. 12.62 crore at the end of the reporting period.

The latest results show that Ankhukhola Hydropower's earnings growth was supported by both higher electricity sales and lower financial expenses. While electricity sales increased by 32.17%, net profit grew by nearly 55%, with the decline in financing costs helping the company retain more of its operating earnings.

Overall, Ankhukhola Hydropower's fourth-quarter results indicate an improvement in its financial performance, with rising electricity generation revenue being reinforced by a lower financial cost burden. The combination pushed net profit to Rs. 6.35 crore and EPS to Rs. 3.18 during the review period.