Majority of Listed Manufacturing Firms Report Quarterly Profits

Eight of the 11 listed companies under the manufacturing and processing subgroup recorded profits in the first quarter of the current fiscal year, while three remained in the loss zone, according to their published financial statements.

Among the profitable firms, four companies increased their net profit compared to the same period last fiscal year, two saw a decline, and two companies that were in loss last year have turned profitable this year.

Companies that reported higher profits are Shivam Cement, Bottlers Nepal (Balaju), Bottlers Nepal (Terai) and Nepal Lube Oil. Unilever Nepal and Himalayan Distillery posted lower profits than a year ago. Sarbottam Cement and Sonapur Minerals and Oil, which were in loss in the first quarter of last fiscal year, returned to profit this year.

Shivam Cement recorded the highest growth in net profit, while Himalayan Distillery reported the sharpest decline.

Investor Dambaru Ballabh Ghimire said profit fluctuations are natural as competition remains intense in the manufacturing and processing sector.

By November 18, all 11 companies in this subgroup had published their Q1 results, drawing noticeable investor interest. On Tuesday, the subgroup index increased by 0.20 percent.

According to Ghimire, investor attraction towards this subgroup is also driven by the companies’ dividend track record. Sarbottam Cement, which posted the steepest drop in net profit among the firms, recently proposed a 20 percent dividend — the highest so far — prompting investors to focus more on dividend announcements than on quarterly earnings.

Unilever Nepal has consistently distributed the highest dividends among listed companies. This year, it paid Rs 1,842 per share as cash dividend, including tax.

Om Megashree Pharmaceuticals, Sagar Distillery and Ghorahi Cement remained in loss in the first quarter. Om Megashree went public only late last fiscal year. Although still in loss, Sagar Distillery and Ghorahi Cement have reduced the size of their losses.

Ghorahi Cement, which had posted a net loss of over Rs 513.7 million in the first quarter of last fiscal year, reduced its net loss to Rs 128 million this year. Its sales revenue increased by 35 percent, rising from more than Rs 668.4 million to over Rs 906 million.

Sagar Distillery’s sales revenue, however, dropped by more than 86 percent. The company generated over Rs 429 million in revenue in Q1 last fiscal year, but it fell to just over Rs 59.9 million this year.