KATHMANDU, Feb 13: The financial statements of real sector companies indicate the grim picture of the national economy, with declining trade pushing several firms into losses. Among the nine publicly listed companies in this sector, five have reported deteriorating financial positions.
In the first six months of the current fiscal year, four companies recorded losses, while one saw a decline in profit. Meanwhile, four companies managed to increase their earnings. As of mid-January, only Unilever Nepal, Himalayan Distillery, Nepal Lube Oil, and Sarbottam Cement reported growth in their profits.
Bottlers’ Nepal’s two subsidiaries remain in losses due to declining trade. Bottlers Nepal Balaju incurred a loss of Rs 245 million, while Bottlers Nepal Terai faced a loss of Rs 119 million. Unilever Nepal, however, saw a 13.49 percent increase in net profit, reaching Rs 477.8 million. Himalayan Distillery recorded a substantial rise in profit by 147.42 percent, amounting to Rs 404.9 million. In the cement sector, Shivam Cement saw a sharp decline of 61.77 percent in profit, dropping to Rs 56.8 million, while Ghorahi Cement and Sonapur Minerals remained in the red with losses of Rs 667.1 million and Rs 122.1 million, respectively. Sarbottam Cement, however, reported a 689.21 percent surge in profit, reaching Rs 241.4 million, supported by a 36 percent increase in trade volume.
Govt reiterates its plan to convert real sector companies with...
Revenue figures reflect the struggles of these companies. Bottlers Nepal Balaju reported a 5 percent decline in revenue, while Bottlers Nepal Terai saw a sharper fall of 20 percent. Unilever Nepal posted a 5 percent revenue growth, while Himalayan Distillery saw a 60 percent increase. Shivam Cement recorded a 12 percent drop, whereas Ghorahi Cement’s revenue remained nearly unchanged. Sonapur Minerals saw a 30 percent increase in revenue, while Nepal Lube Oil and Sarbottam Cement registered revenue growth of 6.19 percent and 36 percent, respectively.
The sluggish construction sector has affected cement demand, contributing to the losses of Ghorahi Cement and Sonapur Minerals. Despite this, Sarbottam Cement saw a substantial profit increase. The overall economic slowdown has impacted trade activity, with several real-sector companies struggling to maintain profitability.
