Kalinchowk Darshan Limited (KDL), the company operating the cable car service at the popular tourist and religious destination of Kalinchowk in Dolakha, has reported a strong improvement in profitability in its unaudited fourth-quarter financial results for the fiscal year 2082/83. The company more than doubled its net profit during the review period, supported by a sharp rise in other income and lower finance costs, despite a decline in operating profit.
Revenue Records Double-Digit Growth
During FY 2082/83, Kalinchowk Darshan Limited (KDL) generated Rs. 8.59 crores in revenue from cable car operations and related services, reflecting a 12.55% year-on-year increase from Rs. 7.64 crores recorded in the corresponding period of the previous fiscal year. The increase in revenue indicates continued growth in visitor numbers and demand for the cable car service, which serves thousands of domestic and international pilgrims and tourists travelling to the Kalinchowk Bhagwati Temple each year.
Net Profit Jumps Over 105%
The company posted a net profit of Rs. 5.77 crores, registering a remarkable 105.14% increase compared to Rs. 2.81 crores earned in the previous fiscal year. Despite weaker operating earnings, the impressive growth in bottom-line profit was mainly driven by higher non-operating income and a notable reduction in interest expenses.
Operating Profit Declines, Other Income Surges
Kalinchowk Darshan Limited (KDL)’s operating profit declined to Rs. 3.16 crores, down from Rs. 3.73 crores a year earlier, indicating increased operating expenses or pressure on core business margins.
However, the decline was more than offset by a substantial increase in other income, which surged to Rs. 3.62 crores, compared to only Rs. 16.48 lakhs in the previous fiscal year. This extraordinary rise in non-operating income significantly strengthened the company’s overall earnings.
Lower Finance Costs Reflect Reduced Debt
The company’s financial performance also benefited from lower borrowing costs during the fiscal year. Finance costs declined significantly as interest expenses on bank loans dropped to Rs. 51.08 lakhs, compared to Rs. 92.27 lakhs in the previous year. The reduction reflects the company’s continued efforts to lower its debt obligations and improve financial efficiency.
Balance Sheet Strengthens
Kalinchowk Darshan Limited maintained its paid-up capital at Rs. 63 crores while significantly strengthening its reserves. The company’s reserve fund increased to Rs. 5.80 crores from Rs. 3.19 crores a year earlier, supported by higher retained earnings. The company also continued reducing its long-term liabilities, with long-term borrowings declining from Rs. 4.30 crores to Rs. 1.54 crores during the fiscal year. This substantial reduction has improved the company’s financial stability and reduced future interest obligations. As of the end of FY 2082/83, Kalinchowk Darshan Limited (KDL) reported total assets of Rs. 77.19 crores, underscoring its stable financial position and stronger balance sheet.
Outlook
The latest financial results highlight Kalinchowk Darshan Limited’s improving financial health. While the decline in operating profit suggests the company will need to enhance the efficiency of its core cable car operations, strong growth in revenue, reduced debt, lower finance costs, and a strengthened balance sheet position the company well for sustainable growth in the coming years, particularly as tourism activity in Nepal continues to recover.
Major Financial Highlights:
| Particulars (Rs in 000) | Kalinchowk Darshan Limited | ||
| Q4 2082/83 | Q4 2081/82 | Difference | |
| Paid Up Capital | 630,000 | 600,000 | 5.00% |
| Reserves & Surplus | 58,013 | 31,907 | 81.82% |
| Property, Plant and Equipment | 482,095 | 783,835 | -38.50% |
| Revenue from Operation | 85,949 | 76,361 | 12.56% |
| Other Income | 36,177 | 1,649 | 2093.90% |
| Finance Cost | 5,169 | 9,228 | -43.98% |
| Net Profit | 57,684 | 28,121 | 105.13% |
| EPS (In Rs.) | 9.16 | 4.69 | 95.36% |
| Net Worth per Share (In Rs.) | 109.21 | 105.32 | 3.69% |
| Qtr End P/E Ratio | 85.62 | – | |
| Qte End Price | 784 | – | |
