Buddha Bhumi Nepal Hydro power Company Limited, listed on the Nepal Stock Exchange (NEPSE) under the symbol BNHC, has a paid up capital of Rs. 800,000,000. BNHC had reported a significant improvement in its fourth-quarter financial performance in FY 2082/83 after recording losses in the previous two fiscal years.
Lets look at some of the fundamental indicators of BNHC in the last three fiscal years. Comparison of BNHC's fourth-quarter financial statements for FY 2080/81, FY 2081/82 and FY 2082/83 are shown in a table below:
|
4th Quarter |
2080/81 |
2081/82 |
2082/83 |
|
Net Profit/ Loss (Rs.) |
(14,889,778.32) |
(22,594,427.47) |
12,074,483.60 |
|
EPS (Rs.) |
(3.72) |
(5.65) |
1.81 |
|
Net Worth per Share (Rs.) |
87.29 |
77.94 |
100.59 |
|
P/E Ratio |
171.12 |
89.80 |
186.91 |
|
PBV Ratio |
4.83 |
3.61 |
2.77 |
As shown in the above table, BNHC reported a net profit of Rs. 12,074,483.60 in 4th quarter of FY 2082/83. The profit was in negatives in FY 2080/81 and FY 2081/82. As EPS is affected by the net profit, it followed the same pattern and remained negative for two years before recovering to Rs. 1.81 in the last year’s 4th quarter. P/E ratio and PBV ratio had also shown fluctuation due to changing market.
One of the important news during 4th quarter of FY 2082/83 was that the company issued 100% right shares worth Rs. 40 Crores through the issue of 40 lakhs (1: 1) units of right shares to its existing shareholders. The company's paid-up capital was Rs. 40 Crores and after the adjustment of the proposed right share, the company's paid-up capital had increased to Rs. 80 Crores. Out of the 40,00,000 right shares, eligible shareholders were allotted 35,25,304 shares, representing 88.13% of the issue. The remaining 4,74,696 shares, representing 11.86%, remained unclaimed and were subsequently offered through auction at a cut off price of Rs. 296.
Retained earning and reserves of BNHC was in negatives and net worth per share was also less than par value before the right share issue and now we can see Rs. 30,59,034.54 allotted for reserves and net worth per share increased from Rs. 77.94 to Rs. 100.59 which could be the result of auction, as around Rs. 10 cr. was generated from it. More than 12 lakh shares have already been traded after right share was listed in NEPSE which is around 30% of total listed shares. Due to this, volume seems to be drying up in the recent days which could result in some price fluctuations in the coming days.
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