Nepal Telecom Reports 32.97% Decline in Net Profit in Q2 2081/82 Following Drops in Revenue and Other Income
Wed, Feb 12, 2025 7:42 AM on Financial Analysis, Highlight News, Company Analysis,
Nepal Doorsanchar Company Limited (NTC) has reported a net profit of Rs. 2.63 Arba in the second quarter (Q2) of the fiscal year 2081/82, marking a decline of 32.97% compared to Rs. 3.93 Arba in the same period of the previous year. The company's revenue from operations stood at Rs. 17 Arba, reflecting a slight decrease of 1.40% from Rs. 17.24 Arba in Q2 2080/81. Meanwhile, other income witnessed a significant drop of 38.11% to Rs. 2.51 Arba from Rs. 4.06 Arba.
The telecom giant's paid-up capital stood at Rs. 18 Arba, while its other equity, including retained earnings, fell by 4.90% to Rs. 73.14 Arba. The company’s total investment, comprising both long-term and short-term assets, decreased by 19.69% to Rs. 44.61 Arba. Similarly, property, plant, and equipment declined by 4.81% to Rs. 45.99 Arba. However, trade receivables rose by 26.96% to Rs. 1.92 Arba.
On the expense side, Nepal Telecom’s finance cost remained stable at Rs. 76.79 Crore, with a marginal decline of 0.19%. Operating and maintenance expenses were recorded at Rs. 3.14 Arba, down by 1.16% from the corresponding quarter last year.
The company's annualized earnings per share (EPS) stands at Rs. 29.28, while its net worth per share is Rs. 506.34. The price-to-earnings (P/E) ratio at the quarter’s end was 30.33, and the current ratio, indicating liquidity strength, was recorded at 2.01.
Major Highlights:
*Figure is of Immediate Fiscal Year Ending
| Particulars (Rs in 000) | Nepal Telecom | ||
|---|---|---|---|
| Q2 2081/82 | Q2 2080/81 | Difference | |
| Paid Up Capital | 18,000,000 | 18,000,000* | 0.00% |
| Other Equity (Retained Earnings) | 73,141,356 | 76,907,052* | -4.90% |
| Property, Plant and Equipment | 45,996,376 | 48,321,256* | -4.81% |
| Investment (Long Term + Short Term) | 44,613,781 | 55,548,964* | -19.69% |
| Trade Receivables | 1,924,704 | 1,516,047* | 26.96% |
| Revenue from Operation | 17,004,925 | 17,246,780 | -1.40% |
| Other Income | 2,514,342 | 4,062,600 | -38.11% |
| Finance Cost | 76,798 | 76,941 | -0.19% |
| Operating and Maintenance Expenses | 3,149,376 | 3,186,231 | -1.16% |
| Net Profit | 2,635,121 | 3,931,404 | -32.97% |
| Annualized EPS (In Rs.) | 29.28 | ||
| Net Worth per Share (In Rs.) | 506.34 | ||
| Qtr End P/E Ratio | 30.33 | ||
| Current Ratio | 2.01 | ||
