Production-Based Industries Recovering, EPS Improving

Kathmandu: As production-based sectors gradually return to normalcy, earnings per share (EPS) are also showing signs of improvement.

The financial reports published by industries in this sector indicate that their economic conditions are on the mend. A comparative analysis of the financial statements of industries such as Sarvottam Cement, Sonapur Cement, Ghorahi Cement, Shivam Cement, and Reliance Spinning Mills shows that some of these companies have experienced improved financial performance.

As of the third quarter of the current fiscal year, Reliance’s EPS has reached Rs. 25.49. Previously, the EPS was Rs.  22.19 in the second quarter and Rs. 19.95 in the first quarter of the same fiscal year. In contrast, at the end of the previous fiscal year, Reliance’s EPS was just Rs. 2.95, indicating a steady increase throughout the current year up to the third quarter.

Compared to companies that have issued ordinary shares at a premium, Reliance Spinning Mills stands out with the highest EPS.

Looking at the data from the past five fiscal years, Reliance’s EPS outperforms that of companies such as Sarvottam Cement, Sonapur Cement, Ghorahi Cement, and Shivam Cement, which all issued IPOs at a premium price.

According to the financial statements from fiscal year 2077/78 (2020/21) to 2080/81 (2023/24) and the second quarter of the current fiscal year, Reliance Spinning Mills has shown consistently strong EPS performance.

• In FY 2077/78, Reliance had the highest EPS among the five companies at NPR 53.91
• In FY 2078/79, its EPS rose to Rs  61.12
• In FY 2079/80, it stood at Rs  54.34
• In FY 2080/81, it declined to Rs 2.95

Reliance has made significant improvements in its financial performance during the current fiscal year. According to its third quarter report for FY 2081/82, most of its financial indicators have improved.

As of Chaitra (end of third quarter), the company has generated a net profit of Rs. 1.0285 billion. In contrast, its net profit was Rs. 865.06 million at the end of the previous fiscal year (Asar), marking an increase of Rs. 163.47 million. Most of the company’s key indicators have shown growth by the third quarter of the current fiscal year.

By Chaitra, Reliance had conducted business worth NPR 7.3917 billion, compared to Rs. 9.206 billion in the previous fiscal year. The company also earned Rs.  4.27 million in other income. After tax, the profit for this period was Rs. 324.296 million.

Reliance Spinning Mills Ltd. was established in 1997 (BS 2054). In its 27 years of operation, the company has attracted an investment of Rs. 15 billion, and provides direct employment to over 4,000 people.

Reliance Spinning Mills is in the process of issuing an Initial Public Offering (IPO) through the book-building method. The company plans to issue 1,155,960 shares at a price of Rs. 820.80 per share, amounting to more than Rs. 948.8 million in total IPO value.

Nepali version of the news