Nepal Telecom’s net profit declines by 12.98 percent in Q2

Kathmandu. Nepal Telecom (NTC) has published its unrevised financial details for the second quarter of the fiscal year 2082/83. According to the report, the net profit of the company was 12 percent compared to the same period last year. It has decreased by 98 percent.

Total income from operations during the period stood at Rs 17.29 billion as compared to Rs 17.49 billion in the same period last year. That’s 73 percent more. However, the total income was limited to Rs 19.22 billion compared to the same period last year. It’s 5 percent less.

EBITDA for the second quarter stood at Rs 9.77 billion, compared to Rs 2.5 billion in the same period last year. That’s 60 percent less. Profit before tax stood at Rs 5.91 billion. It has decreased by 59 percent.

Net profit fell to Rs 4.16 billion. The company had posted a net profit of Rs 4.78 billion in the same quarter last year. Accordingly, the earnings per share is Rs 46.27 per share.

According to the company, due to the widespread use of OTT services, the interconnection revenue will be around 6 percent due to the decrease in foreign arrival calls. It has decreased by 14 percent. It has also affected voice and SMS earnings.

Similarly, interest income fell by 32 percent due to lower interest rates and changes in investment value. According to the company, the expected increase in revenue has not been achieved due to the reduction in service charge due to the increase in service and quality in remote and remote areas, and the reduction in service charge due to the change in rate policy.

Employee expenses due to increase in employee insurance and pension liabilities 11. The foreign currency exchange profit has increased by 150 percent due to the change in the foreign exchange rate. According to the accounting policy, the impairment expenditure has increased by Rs 18.35 crore due to the additional provision in the stock of commodity. Current tax is 55% compared to last year. That’s an increase of 56 percent.