High decline in Nepal Telecom's profit, decline in income of the company with the highest capital base
High decline in Nepal Telecom's profit, decline in income of the company with the highest capital base.
The financial condition of telecommunication service provider Nepal Telecom has started declining every quarter. The company's position is deteriorating due to declining trade and rising costs. According to the financial statements of Nepal Telecom for the second quarter of the current fiscal year (July to mid-December) released on Friday, net profit has decreased significantly.
According to the company, profit fell 33.40 percent to Rs 3.28 billion. The profit was Rs 4.93 billion in December last year. It is mentioned in the financial statement that the main source of income of the company has decreased.Telecom sells internet, mobile and landline services to customers. Such income has declined by 1.74 percent. The company had earned Rs 18.03 billion in the previous fiscal year. This time it is only Rs 17.72 billion.
Other incomes also declined by 26.65 percent. The interest on the bank is the return on investment made elsewhere. Such income has dropped from Rs 3.88 billion to Rs 2.85 billion. As a result, total income declined by 6.16 percent. Total income has come down from Rs. 21.92 billion to Rs. 20.57 billion.
Despite the decline in the company's 'performance', the share market price continues to rise. The company has not yet announced how much dividend it will distribute from last year's profits. But the share price has been affected due to rumors of increasing public participation. The company has so far been distributing only 45 to 55 percent cash dividend.
Communications Minister Parbat Gurung had said that public participation should be increased in the company's annual festival program. The company is also doing some homework for this. That is why the share price has reached a record high.
The company is preparing to hand over the management to a foreign strategic partner instead of bringing in foreign capital. The company has a paid up capital of Rs 15 billion. Of this, 8.47 percent shares are held by the public including the employees of the company. The company has a reserve fund of Rs 80.37 billion. The total capital including paid up capital is Rs. 95.52 billion.
The financial condition of telecommunication service provider Nepal Telecom has started declining every quarter. The company's position is deteriorating due to declining trade and rising costs. According to the financial statements of Nepal Telecom for the second quarter of the current fiscal year (July to mid-December) released on Friday, net profit has decreased significantly.
According to the company, profit fell 33.40 percent to Rs 3.28 billion. The profit was Rs 4.93 billion in December last year. It is mentioned in the financial statement that the main source of income of the company has decreased.Telecom sells internet, mobile and landline services to customers. Such income has declined by 1.74 percent. The company had earned Rs 18.03 billion in the previous fiscal year. This time it is only Rs 17.72 billion.
Other incomes also declined by 26.65 percent. The interest on the bank is the return on investment made elsewhere. Such income has dropped from Rs 3.88 billion to Rs 2.85 billion. As a result, total income declined by 6.16 percent. Total income has come down from Rs. 21.92 billion to Rs. 20.57 billion.
Despite the decline in the company's 'performance', the share market price continues to rise. The company has not yet announced how much dividend it will distribute from last year's profits. But the share price has been affected due to rumors of increasing public participation. The company has so far been distributing only 45 to 55 percent cash dividend.
Communications Minister Parbat Gurung had said that public participation should be increased in the company's annual festival program. The company is also doing some homework for this. That is why the share price has reached a record high.
The company is preparing to hand over the management to a foreign strategic partner instead of bringing in foreign capital. The company has a paid up capital of Rs 15 billion. Of this, 8.47 percent shares are held by the public including the employees of the company. The company has a reserve fund of Rs 80.37 billion. The total capital including paid up capital is Rs. 95.52 billion.
