Kathmandu – Mountain Energy Nepal Limited has posted an impressive financial performance for the fourth quarter of the fiscal year 2081/82, with the company’s net profit reaching Rs. 629 million. The results mark a significant improvement over the previous year, reflecting stronger revenue growth and enhanced operational efficiency.
Revenue Growth and Profit Surge
The company’s total income surged to Rs. 13.07 billion, compared to Rs. 9.22 billion in the previous fiscal year. This substantial increase was driven by higher electricity sales, better asset utilization, and supplementary income from insurance claims, which contributed Rs. 8.062 million to the top line.
Mountain Energy’s operating profit stood at Rs. 892.1 million after deducting sales costs and direct expenses. The cost of sales amounted to Rs. 258.7 million, while other direct expenses totaled Rs. 193.7 million. Efficient expense control and improved plant operations contributed to the strong operating margin.
Cost Management and Profit Before Tax
On the expense side, financial costs reached Rs. 244.3 million, primarily due to interest and loan servicing. Additionally, the company allocated Rs. 12.9 million for employee bonuses in recognition of performance.
Before taxes, the company reported a profit of Rs. 636 million. After tax deductions, the net profit settled at Rs. 629 million, underlining steady growth despite sectoral challenges such as fluctuating demand and operational risks in the energy sector.
Earnings Per Share and Net Worth Improvement
Earnings per share (EPS) rose to Rs. 24.17 from Rs. 17.87 in the previous fiscal year—an increase of nearly 35%. This reflects stronger profitability and higher returns to shareholders. Similarly, the company’s net worth per share increased to Rs. 152.11, signaling a more robust balance sheet and improved shareholder equity.
Financial Stability and Sector Outlook
The latest results indicate Mountain Energy’s resilience in navigating both domestic market pressures and broader energy sector volatility. With rising electricity demand in Nepal and ongoing infrastructure investments, the company is well-positioned for continued growth.
Industry analysts note that Mountain Energy’s strong performance this fiscal year comes amid a positive trend for hydropower producers in the country. Improved water flow, better plant load factors, and expanded transmission capacity have allowed producers to increase generation and sales volumes.
Moreover, government policies promoting renewable energy and the growing cross-border electricity trade with India could further boost revenue streams for companies like Mountain Energy in the coming years.
Management’s Strategic Focus
Company executives have attributed the positive results to disciplined financial management, effective operational strategies, and timely maintenance of assets. Investments in plant modernization and efficient resource utilization have helped reduce downtime and improve generation capacity.
Looking ahead, Mountain Energy aims to explore additional hydropower projects and diversify revenue sources, while maintaining a strong focus on environmental and social governance standards.
