Nepal Telecom's Net Profit Drops 16.44% in Q4 FY 2080/81; Revenue and Investments Decline
Thu, Aug 15, 2024 9:01 AM on Financial Analysis, Company Analysis, Latest,
Nepal Telecom (NTC) has released its fourth-quarter financial results for the fiscal year 2080/81, revealing a 16.44% decline in net profit, which dropped to Rs. 6.62 Arba from Rs. 7.92 Arba in the corresponding quarter of the previous year. This decline is largely attributed to a 4.99% decrease in revenue from operations, which amounted to Rs. 34.46 Arba.
The company also reported a significant 22.52% reduction in its investments, now standing at Rs. 55.76 Arba, alongside a 16.68% drop in finance income, which totaled Rs. 6.48 Arba.
On a positive note, Nepal Telecom's reserves and surplus slightly increased by 0.83% to Rs. 76.58 Arba. Additionally, the company successfully reduced its operating and maintenance expenses by 12.98%, bringing them down to Rs. 6.64 Arba.
Despite these cost-saving measures, the overall financial performance was impacted, with the annualized Earnings Per Share (EPS) declining to Rs. 36.77 from Rs. 44.00 in the previous year. The Net Worth per Share was reported at Rs. 525.43.
Major Financial Highlights:
| Particulars (Rs in 000) | Nepal Telecom | ||
|---|---|---|---|
| Q4 2080/81 | Q4 2079/80 | Difference | |
| Paid Up Capital | 18,000,000 | 18,000,000 | 0.00% |
| Reserve and Surplus | 76,577,073 | 75,945,038 | 0.83% |
| Property, Plant and Equipment | 47,271,404 | 50,859,361 | -7.05% |
| Investment (Long Term + Short Term) | 55,758,722 | 71,965,601 | -22.52% |
| Trade Receivables | 1,733,900 | 2,087,247 | -16.93% |
| Revenue from Operation | 34,461,135 | 36,271,450 | -4.99% |
| Other Income | 674,081 | 372,921 | 80.76% |
| Finance Income | 6,481,900 | 7,779,246 | -16.68% |
| Office Operation Expenses | 1,280,935 | 1,312,104 | -2.38% |
| Operating and Maintenance Expenses | 6,640,038 | 7,630,562 | -12.98% |
| Net Profit | 6,617,776 | 7,920,155 | -16.44% |
| Annualized EPS (In Rs.) | 36.77 | 44.00 | -16.44% |
| Net Worth per Share (In Rs.) | 525.43 | ||
| Qtr End P/E Ratio | 22.98 | ||
| Current Ratio | 2.57 | ||
