Nepal Telecom's profit declines due to decreased service sales income and increased expenses

Published On: August 16, 2023 03:40 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Aug 16: The profit of Nepal Telecommunication Company (Nepal Telecom) has decreased due to the reduction in the income of service sales and the increase in operating expenses. In the last fiscal year 2079/80 BS, the company reported a profit of Rs 7.80 billion.

In the fiscal year 2078/79 BS, the profit decreased by 7.86 percent to Rs 8.47 billion.

Although the company's income from the sale of services has decreased, the total income has generally increased due to the increase in the company's financial income.

In the fiscal year 2078/79 BS, the company generated Rs 37.91 billion from service sales, but in the last fiscal year, the earnings dropped to Rs 36.80 billion.

However, the financial income escalated from Rs 5.90 billion. As a result, the total income of the company grew from Rs 44.37 billion to Rs 44.86 billion.

Despite the increase in the total income, the profit decreased due to challenges in managing the expenses. The company's employee expenses surged from Rs 7.36 billion to Rs 8.33 billion.

The expenses of operation and other construction increased from Rs 7.5 billion to 7.50 billion. As the company's financial expenses fell from Rs 779 million to Rs 475 million, the deduction increased from Rs 5.61 billion to Rs 6.19 billion.

Due to the increase in various expenses of the company, the profit has decreased. The profit of the company, which has a paid-up capital of Rs 18 billion, has decreased and the income per share has decreased from Rs 47.06 to Rs 43.36.

The company has Rs 75.82 billion in reserve funds. The company has a net worth of Rs 521.27 per share and a price-to-earnings ratio of 20.92 times.

The company's long-term debt has decreased from Rs 1.18 to 986 million. Employees have taken loans amounting to Rs 3.79 billion.


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