11th February 2025, Kathmandu
Salt Trading Corporation Limited has announced a net profit of NPR 35.3 million (3 crore 53 lakh 66 thousand) for the second quarter of the fiscal year 2024/25.
Salt Trading Corporation Q2 Report
This figure represents a 1.25% decrease compared to the same period last year, when the company earned NPR 35.8 million (3 crores 58 lahks).
Decline in Trade and Sales Revenue
The company’s total trade volume has dropped from NPR 6.69 billion (6 Arba 69 Crore) to NPR 4.58 billion (4 Arba 58 Crore). Sales revenue also saw a significant decrease, falling by 31.55% from NPR 6.69 billion (6 Arba 69 Crore) last year to NPR 4.58 billion (4 Arba 58 Lakh 35 Thousand) this year.
Expense Reduction and Improved Efficiency
While revenue has declined, the corporation successfully reduced its expenses. Employee expenses fell from NPR 175 million (17 crore 50 lakh) to NPR 159.9 million (15 crore 99 lakh). Administrative costs also decreased, dropping from NPR 103.8 million (10 crore 38 lakh) to NPR 76 million (7 crore 60 lakh).
The company has been particularly effective in reducing interest expenses. These costs decreased dramatically, from NPR 226.4 million (22 crore 64 lakh) to NPR 28.8 million (2 crore 88 lakh), showing substantial improvement in financial management.
Reserve Fund and Capital Strength
Salt Trading Corporation maintains a strong reserve fund, totaling NPR 1.36 billion (1 Arba 36 Crore). The reserve fund is more than four times the company’s paid-up capital of NPR 320.7 million (32 crore 7 lakh 16 thousand). This shows the company’s solid financial position and ability to withstand market fluctuations.
Financial Indicators: Earnings and Net Worth
The company’s earnings per share (EPS), annualized, stand at NPR 22.05. Its net worth per share is recorded at NPR 384.30. These figures reflect the company’s stability despite the slight drop in profit.
Outlook and Future Strategy
Salt Trading Corporation’s financial performance shows both challenges and strengths. The company faced a drop in sales revenue and total trade volume but managed to reduce costs effectively. The decrease in interest expenses and strong reserve fund highlight its ability to manage resources well.
Despite the small decline in profit, the corporation’s financial indicators point to a stable future. The company aims to focus on cost management and efficient operations to maintain profitability in the coming months.
For more: Salt Trading Corporation Q2 Report