NTC’s profit increased 18% to $8 billion in FY078/79


Nepal Telecom (NTC) saw its profit increase by 18% to a total of Rs 8 billion, 38 crore and 88,000 in the financial year 078/79 against the same duration of the financial year 077/78. In the last financial year, the company increased its profit by Rs 1 billion, 25 crore, 6 lakh and 47,000 compared to the previous financial year.

In the previous fiscal year 077/78, the government-backed operator generated 7 billion rupees, 12 crores, 94 lakhs and 41,000 in profit.

Total profit of Ntc in fiscal year 078/79 Total profit of Ntc in fiscal year 077/78 Growth Percentage
8.39 billion rupees (approx.) 7.13 billion rupees (approx.) 1.25 billion rupees↑ 18% (approx.)

After being shaken by the effects of Covid-19 on its profits, the company has gradually started to achieve strong financial performance. It looks like the company can now maintain a positive profit trajectory.

Find out: Ntc sees profit drop in third quarter of fiscal year 078/79

Total operating revenue also increased

At the same time, Ntc also saw its total operating revenue increase in the fourth quarter of FY078/79. The company generated 37 billion rupees, 88 crore, 99 lakh and 58,000 total revenue. This is an increase of 5.44% compared to the figure for the same period last year.

Going up, the increase in total operating income resulted in Rs 1 billion, 95 crore, 42 lakh and 75,000. Meanwhile, in the 077/78 financial year, Ntc raised Rs 35 billion of rupees, 93 crores, 56 lakhs and 83,000 in total operating revenue.

Fiscal Year 078/79 Total Operating Revenues Total operating revenue for fiscal year 077/78 Growth Percentage
37,88,99,58,000 35,93,56,83,000 1,95,42,75,000↑ 5.44

The telecom operator’s total revenue collection also increased by 5% over the same period. In the last fiscal year (till the end of Ashar), the total revenue collection of Ntc amounted to Rs 42 billion, 20 crores, 99 lakhs and 3,000. In fiscal year 078/ 79 for the same duration, the company raised Rs 44 billion, 32 crores, 13 lakhs and 58,000 in total revenue.

Total revenue for fiscal year 078/79 Total revenue for fiscal year 077/78 Growth Percentage
44,32,13,58,000 42,20,99,03,000 2,111,455,000↑ 5

See also: How to transfer balance in Nepal Telecom Mobile?

Ntc Lists Reasons For Its Earnings And Other Financial Changes In The Fourth Quarter Of FY078/79

The company has identified the following reasons for its overall financial condition in the fourth quarter of fiscal year 078/79.

  • Increased data benefits in GSM service. The company generated 50 crore more from data usage during the given period.
  • The expansion of 4G coverage has helped the company increase Rs 2 billion and Rs 55 crore revenue in GSM Voice service.
  • The decrease in the interconnect tariff as per the interconnect guidelines and the growth of OTT services resulted in the loss of Rs 70 crore.
  • A decrease in the use of wireline services led to a loss of Rs 21 crore in revenue.
  • The migration from CDMA to GSM service also resulted in the company losing Rs 12 crore.

Evolution of revenues from non-telecom services

  • Changes in bank interest rates helped the company earn 77 million rupees profit on interest.
  • It also generated a foreign exchange gain of Rs 37 crore due to changes in exchange rates.
  • A decrease in depreciation and financial charges according to accounting principles and IFRS/NFRS.

For the first time, Ntc issued to its shareholders 20% free shares last year, which brought its paid-up capital to Rs 18 billion. And besides the growth in earnings in the fourth quarter of FY078/79, earnings per share also increased. Currently, the earnings per share of the company stands at Rs 46.56.

How do you see Ntc starting to show strong financial performance? Can he maintain the same numbers in the coming months? Share your contribution in the comments below.

Previous India @75: Waves of digital transformation
Next IT majors bet on niche companies to bolster their consulting capabilities