Upper Solu Hydro Electric Posts 84 Percent Rise in Net Profit for FY 2082/83
10th August 2026, Kathmandu
Upper Solu Hydro Electric Company Limited has reported a strong improvement in its financial performance for the fourth quarter of fiscal year 2082/83.
Upper Solu Net Profit Rises
The hydropower producer recorded a sharp rise in net profit, supported by steady power generation and prudent financial expense management.
According to the unaudited fourth quarter financial report, net profit reached 20.87 million Nepali Rupees by the end of fiscal year 2082/83.
This reflects an increase of nearly 84 percent compared to the net profit of 11.32 million Nepali Rupees posted in fiscal year 2081/82.
Steady Increase in Electricity Sales Revenue
The earnings growth was underpinned by a sustained rise in revenue from electricity sales delivered to the national grid.
Upper Solu Hydro Electric generated 738.29 million Nepali Rupees from power sales during fiscal year 2082/83.
In comparison, electricity sales revenue stood at 724.05 million Nepali Rupees in the preceding fiscal year.
Efficient cost controls and stable operational efficiency helped translate the top line revenue growth into higher net earnings.
Strong Expansion in Reserve Fund and Balance Sheet Position
The balance sheet position of Upper Solu Hydro Electric strengthened significantly over the twelve month reporting period.
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The reserve fund of the company recorded substantial expansion, rising from 37.04 million Nepali Rupees in fiscal year 2081/82 to 256.76 million Nepali Rupees in fiscal year 2082/83.
This accumulation of reserves reflects improving financial stability and higher retained earnings.
Debt Reduction and Operational Debt Management
The hydro producer made measurable progress in lowering its overall long term liabilities during the fiscal year.
Long term bank borrowings declined from 3.15 billion Nepali Rupees to 2.94 billion Nepali Rupees.
Paying down long term debt reduces recurring interest expenses, further protecting future profit margins and lowering financial risk.
Per Share Financial Indicators and Capital Structure
The improved profitability positively impacted key per share financial metrics for equity holders:
- Paid Up Capital: The total paid up capital of the company stands at 1.35 billion Nepali Rupees.
- Earnings Per Share: The earnings per share of Upper Solu Hydro Electric reached 15.46 Nepali Rupees.
- Net Worth Per Share: The net worth per share improved to 119.02 Nepali Rupees.
Summary of Key Financial Parameters
- Company Name: Upper Solu Hydro Electric Company Limited
- Reporting Period: Fiscal Year 2082/83 Fourth Quarter
- Net Profit: 20.87 million Nepali Rupees
- Net Profit Growth: Approximately 84 percent
- Electricity Sales Revenue: 738.29 million Nepali Rupees
- Previous Electricity Sales Revenue: 724.05 million Nepali Rupees
- Reserve Fund Balance: 256.76 million Nepali Rupees
- Previous Reserve Fund Balance: 37.04 million Nepali Rupees
- Paid Up Capital: 1.35 billion Nepali Rupees
- Long Term Debt: 2.94 billion Nepali Rupees
- Previous Long Term Debt: 3.15 billion Nepali Rupees
- Earnings Per Share: 15.46 Nepali Rupees
- Net Worth Per Share: 119.02 Nepali Rupees
Operational Challenges and Future Outlook
Despite the solid operational and financial results, Upper Solu Hydro Electric continues to navigate standard sector risks inherent to run of river hydropower operations.
Key operational hurdles include seasonal fluctuations in river water levels, potential natural disasters during monsoon periods, and occasional transmission line technical constraints.
The management has stated that active measures are ongoing to mitigate these operational risks and ensure consistent energy generation moving forward.
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