Nepal Telecom's profit declines by 440 million

11th May, 2022 | Tourism Mail Crew

KATHMANDU, May 11: Nepal Telecom's net profit has declined. As per the financial statement of the third quarter of the current Fiscal Year 2078-79, the net profit has declined by Rs. 449.125 million.

Such profit was Rs 5.88 billion in the last fiscal year. This year, it has come down to Rs 5.43 billion.

The total income of Nepal Telecom has increased by Rs. 862.956 million. Telecom's total revenue increased by 2.72 percent to Rs 32.53 billion.

Similarly, the total operations of the company up to the third quarter of last year (mid-April 2077 BS) 27.45 billion in the corresponding period of the previous year (mid-April ) as of now, it has increased by Rs. 768.25 million (i.e. 2.8 percent)  at present, the total operating income has increased to Rs. 28.21 billion.

The increase in the use of OTT in the Covid-19 pandemic has led to a decline in the use of intercommunication services, including international roaming, which has led to a decline in net profit, the telecom said.

Nepal Telecom claims that the company's service consumption has declined due to Covid.

According to the company, the increase in maintenance costs, the increase in the depreciation of fixed assets, etc. have affected the profitability of the business.

It has been mentioned that even though the consumption of data towards GSM service has increased, the revenue has not increased in the same proportion as the company has launched very low rate data packages targeting the pandemic of Covid-19.

Lack of chip sets and difficulties in international transportation have also caused problems after the epidemic, the telecom said.

Telecom has said that it has not been able to extend the service in the expected time due to delay in import of equipment and goods due to rising tariffs on essential items.

The company's current earnings per share is Rs 40.26, price-to-earnings ratio is 26.48 times and net worth is around Rs 512 per share. The company's shares are currently trading at Rs 1,028 per share.