Swet-Ganga Hydropower & Construction Reports Strong Performance in Q2 of FY 2081/82

Swet-Ganga Hydropower & Construction Limited (SGHC) has delivered an impressive financial performance in the Q2 of FY 2081/82. The company recorded a net profit of Rs. 10.25 crores, marking a significant turnaround from the net loss of Rs. 2.53 lakhs recorded in the same period last year. This recovery highlights the company’s improved operational efficiency and financial management. Below is a detailed breakdown of its performance:

1. Key Financial Highlights

Net Profit: Rs. 10.25 crores (compared to a net loss of Rs. 2.53 lakhs in Q2 of FY 2080/81).
Power Sales Revenue: Increased by 10.85% to Rs. 51.26 crores (up from Rs. 46.24 crores in the previous year).
Administrative Expenses: Reduced by 1.81%, showcasing better cost management.
Finance Costs: Increased by 22.13%, reflecting higher borrowing costs.

2. Financial Position

Paid-up Capital: Remained stable at Rs. 1.59 Arba.
Retained Earnings: Showed a deficit of Rs. 34.21 crores, indicating past financial challenges.
Property, Plant, and Equipment (PPE): Grew by 7.48% to Rs. 1.82 crores, reflecting investments in infrastructure.
Long-term Borrowings: Decreased by 2.60% to Rs. 4.58 Arba, indicating efforts to reduce debt.

3. Shareholder Metrics

Earnings Per Share (EPS): Annualized EPS stood at Rs. 12.88, reflecting the company’s profitability.
Net Worth Per Share: Rs. 78.54, indicating the value of each share based on the company’s net assets.
Price-to-Earnings (P/E) Ratio: 39.83, suggesting the stock’s valuation relative to its earnings.
Market Price: The stock is currently trading at Rs. 513 per share.

Comparison of Key Financial Highlights for Q2 of This Fiscal Year and the Previous Fiscal Year.

Particulars	Q2 2081/82	Q2 2080/81	Difference (%)
Paid-Up Capital	1,593,000.00	1,593,000.00	0.00%
Retained Earnings	-342,119.94	-277,144.70	–
Reserves	217.11	1,358.54	-84.02%
Borrowings	4,584,172.06	4,706,465.95	-2.60%
Property, Plant & Equipment	18,228.07	16,959.02	7.48%
Revenue	512,657.88	462,488.52	10.85%
Administrative Expenses	130,634.67	133,040.24	-1.81%
Finance Expenses	225,424.49	289,475.66	-22.13%
Net Profit	102,576.39	-253.73	–
Annualized EPS (In Rs.)	12.88	-0.03	–
Net Worth per Share (In Rs.)	78.54	82.69	-5.02%
Qtr End PE Ratio (times)	39.83	–	–
Qtr End Market Price (Rs.)	513	–	–

Conclusion

Swet-Ganga Hydropower & Construction Limited (SGHC) has made a remarkable recovery in the second quarter of FY 2081/82, achieving a net profit of Rs. 10.25 crores after reporting a loss in the same period last year. The growth in power sales revenue and reduction in administrative expenses have been key drivers of this turnaround. Despite an increase in finance costs, the company’s improved financial position and strong shareholder metrics highlight its resilience and potential for future growth. Investors and stakeholders can look forward to continued progress as SGHC builds on its recent success.

Swet-Ganga Hydropower & Construction’s Q2 Report of FY 2081/82