NRN Infrastructure & Development Limited (NRN) has slipped into a loss in the fourth quarter of fiscal year 2082/83, with a sharp contraction in total income and higher expenses putting significant pressure on its financial performance.

According to the company's unaudited financial report, NRN Infrastructure reported a net loss of Rs. 7.76 crore by the end of Ashadh. The company had recorded a net profit of Rs. 146 crore during the corresponding period of the previous fiscal year. The sharp reversal in earnings came as the company's overall income declined substantially during the review period.

NRN's total income plunged 98.51%, despite its financial income increasing 50.90%. The sharp decline in total income outweighed the improvement in financial income and significantly weakened the company's ability to generate earnings during the period.

At the same time, the company's total expenses increased 32.43%. The combination of sharply lower income and higher expenses pushed the company from a substantial profit in the previous year into a net loss in the latest reporting period.

The deterioration in profitability was reflected in the company's earnings per share. NRN's EPS stood at negative Rs. 4.32, compared with positive earnings in the previous fiscal year. The negative EPS indicates that the company generated a loss attributable to shareholders during the period.

Despite the decline in earnings, NRN's net worth per share stood at Rs. 169.23 at the end of the fourth quarter. The company has continued to expand its investments across hydropower, infrastructure and other productive sectors, although market volatility and changes in investment values have affected its financial performance.

NRN has invested in six hydropower projects, of which five are already operational. The remaining project, the 53.5 MW Upper Myagdi Hydropower Project, is currently under construction.

Construction of the Upper Myagdi project has reached 51% completion. The project is targeting the start of commercial electricity production by March 5, 2027.

The development of the company's hydropower portfolio remains an important part of its longer-term investment strategy. However, the latest financial results show that its near-term earnings remain exposed to fluctuations in investment values and income generated from its portfolio.

Overall, NRN Infrastructure's fourth-quarter results mark a significant deterioration from the previous fiscal year. The company moved from a Rs. 146 crore profit to a Rs. 7.76 crore loss as total income collapsed by 98.51% and expenses increased by 32.43%. While its financial income grew and its hydropower portfolio continues to expand, the sharp decline in overall income has placed substantial pressure on current profitability.