18 August 2024, Kathmandu
Salt Trading Corporation has reported a net profit of NPR 6 crore 21 lakh for the fiscal year 2080/81.
Salt Trading Corporation Reports
This marks a 19.77% decline from the previous year’s net profit of NPR 7 crore 88 lakh, reflecting a challenging year for the corporation despite significant revenue growth.
The company’s sales income surged to NPR 13.35 billion 3 lakh as of last June, a 52% increase from the NPR 8.78 billion 29 lakh reported in the same period of the previous year. This substantial rise in revenue indicates strong market demand, yet it was not enough to offset the overall decline in profitability.
During the review period, Salt Trading also reported other income of NPR 3 crore 49 lakh, contributing to a total profit of NPR 18 crore 75 lakh. This is a significant increase from the previous year’s total profit of NPR 9 crore 55 lakh, which included other income of NPR 4 crore 33 lakh.
However, the company’s rising expenses have eaten into its profits. Last year, administrative expenses climbed to NPR 13.83 crore, while staff expenses soared to NPR 29.70 crore. In comparison, the previous year saw administrative expenses of NPR 16.03 crore and staff expenses of NPR 31.15 lakh. Additionally, the company spent NPR 4.45 crore on interest last year, up from NPR 58 lakh the year before.
Salt Trading’s paid-up capital rose to NPR 32.7 crore, with a reserve fund of NPR 1 billion 41 crore 43 lakh. This compares to the previous year’s paid-up capital of NPR 27.88 crore and a reserve fund of NPR 1 billion 36 crore 56 lakh.
The decline in net profit has also impacted the company’s earnings per share (EPS), which dropped from NPR 28.26 to NPR 19.71. The company’s net worth per share is currently NPR 397.62, with a price-to-earnings (PE) ratio of 248.84 times.
Despite the revenue growth, Salt Trading Corporation faces challenges in maintaining profitability amid rising costs, reflecting the need for strategic adjustments moving forward.
Salt Trading Corporation Reports
