Kalika Power Records Steady Profit Growth, Strengthens Financial Position
Kalika Power boosts net profit by 9.71% to NPR 94.1 million, driven by steady electricity sales growth and strong financial fundamentals.
ShareSanskar | Shrawan 27, 2082
Kalika Power Company Limited has achieved a measured yet meaningful 9.71% rise in net profit, increasing from NPR 85.8 million to NPR 94.1 million. This growth reflects not only sound financial management but also the hallmarks of a mature and well-run hydropower enterprise in Nepal’s renewable energy sector. Rather than chasing aggressive, high-risk expansion, the company’s strategy emphasizes consistent operational performance.
Electricity sales revenue grew by 2.25% to NPR 195.9 million, signaling stable demand in Nepal’s expanding energy market and efficient utilization of generation capacity. In addition, NPR 1.43 million in ancillary income highlights management’s ability to diversify revenue streams, potentially through mechanisms such as carbon credit monetization or grid support services. On the cost side, disciplined expenditure control is evident, with administrative expenses maintained at NPR 8.67 million and finance costs at NPR 9.64 million.
The company’s financial resilience is further underpinned by a remarkable liquidity position. With total current assets of NPR 119.1 million and liabilities of only NPR 8.25 million, Kalika Power maintains an impressive current ratio of 14.44. This robust liquidity provides a strong buffer against operational uncertainties such as seasonal generation fluctuations or unexpected maintenance costs, both of which are common in hydropower operations. Retained earnings of NPR 125.8 million strengthen the company’s ability to fund future upgrades or capacity expansions without relying heavily on external financing.
Investor confidence in Kalika Power’s stability and potential is reflected in its per-share metrics, Earnings Per Share of NPR 10.08, Net Worth Per Share of NPR 113.48, and a Price-to-Earnings ratio of 53.81. Operating within Nepal’s most strategically vital sector, the company is well-positioned to benefit from national renewable energy targets and potential cross-border electricity exports.
