Terhathum Power’s Net Profit Rises 22%, But EPS Drops Amid Capital Expansion
Terhathum Power Company posted a 22.19% rise in net profit in Q1 FY 2081/82, but its earnings per share declined due to increased paid-up capital.
Terhathum Power Company Limited (TPC) has reported a modest improvement in profitability for the first quarter of FY 2081/82. According to the unaudited financial report, the company’s net profit rose by 22.19% year-on-year to Rs. 5.62 crore, compared to Rs. 4.6 crore in the same period last fiscal year.
Although revenue from electricity sales fell slightly by 0.50% to Rs. 8.23 crore, a sharp 54.58% reduction in financial expenses helped offset the decline and supported the growth in net profit. Operating profit dipped 1.14%, while total profit before tax dropped 0.82% during the review period.
Despite the rise in total earnings, earnings per share (EPS) fell significantly by Rs. 17.91, settling at Rs. 28.12 per share. The decline is attributed to the expansion of the company’s paid-up capital, which diluted per-share profitability.
As of the end of the first quarter, the company’s net worth per share stands at Rs. 99.61, while its price-to-earnings (P/E) ratio is 9.99 times. Terhathum Power currently holds a paid-up capital of Rs. 80 crore, with a reserve fund deficit of Rs. 31 lakh.