API Power earned 62 crores from electricity sales, with a profit of 21 lakhs and 43 thousand.
In the second quarter of the current fiscal year, API Power Company Limited reported a net profit of Rs. 21 lakhs and 43 thousand, a notable decline of 96.56% compared to the corresponding period last year, during which the company recorded a profit of Rs. 6 crores and 23 lakhs. This downturn in profit raises concerns and prompts a closer examination of the company’s financial performance.
Despite the decrease in net profit, there were some positive developments in API Power’s revenue streams. Revenue generated from electricity sales saw a significant uptick, rising from Rs. 27 crores and 42 lakhs to Rs. 62 crores and 66 thousand. This substantial increase suggests a potential expansion in market demand or improved operational efficiency in electricity generation and distribution.
However, alongside the increase in revenue, API Power also experienced a considerable surge in financial expenses, which climbed from Rs. 9 crores and 86 lakhs to Rs. 21 crores and 47 lakhs. This surge in expenses, coupled with the rise in revenue, resulted in a notable escalation in the company’s total expenses, soaring from Rs. 17 crores and 52 lakhs to Rs. 53 crores and 4 lakhs.
Such a significant increase in expenses has inevitably impacted the company’s overall profitability. It underscores the importance of prudent financial management and cost control measures to ensure sustainable business operations and profitability in the long term.
API Power’s financial report also sheds light on its capital structure. The company’s paid-up capital currently stands at Rs. 5 billion, 78 crores, 65 lakhs, and 97 thousand, with additional equity amounting to Rs. 19 crores and 13 lakhs. This robust capital base provides the company with a solid foundation for future growth and expansion initiatives.
Despite the challenges posed by the decrease in net profit and the surge in expenses, API Power remains committed to delivering value to its shareholders. The company’s earnings per share (EPS) for the reporting period stood at Rs. 2.75, reflecting its dedication to generating returns for its investors. Additionally, the net worth per share was recorded at Rs. 103.31, indicating the company’s underlying asset value and financial health.
Overall, while API Power faces challenges in maintaining profitability amidst rising expenses, its strong revenue growth and solid capital base position it well for future opportunities and continued success in the energy sector.