Nepal Doorsanchar Company Limited popularly known as Nepal Telecom (NTC) is state owned telecommunication service provider in Nepal with 85% of the government share. Experts believe that investing in NTC is a safe and profitable investment as NTC has very strong fundamentals and is government owned.
Nepal Telecom has posted net profit depreciated by of 10.65 % in the third quarter of the fiscal year 2072/73. VRS expenses stand at 4.29 arba. VRS expense refers to the payment made to 796 employees in the months of Falgun under the voluntary retirement scheme offered by the company. Due to the VRS expenses allocated to the 796 employees its profit has decreased by 10.65%.
As per the unaudited report for the third quarter published by the company today, NTC has reported net profit (after tax) of Rs 9.31 arba in the third quarter of the fiscal year 2072/73 down from Rs 10.42 arba in the corresponding quarter of the fiscal year 2071/72.
Nepal Telecom has Rs.15 arba paid up capital and has Rs. 71.24 arba in reserve and surplus.
The company’s total income surges to Rs 34.24 arba in the Q3 from Rs 30.62 arba in the corresponding quarter. Likewise, its total expenditure has also increased to Rs 20.97arba from Rs 16.26 arba.
The company’s report shows that the ‘operation and maintenance’ costs of Rs. 5.27 arba accounted the highest portion of its total expenditure, among other headings.
NTC has an investment of Rs 14.49 arba in Q3 up from Rs 1.07 arba in the previous corresponding quarter.
Its earning per share has decline to Rs 82.81 in Q3 compared to Rs 92.69 in the corresponding quarter. Its net worth per share stand at Rs 574.99 and P/E ratio is at Rs 8.09 times.
Nepal Telecom has managed to record a noteworthy growth in performance by expanding its products/ services despite the challenging business environment in terms of power cuts, competitive telecom landscapeas well as increase in competition and operating expenses.
NTC has been providing good return to its investors every year. Here is the list of dividends NTC has been provided every year.
| Distributed Date |
Cash Dividend % |
Total Dividend % |
| 2067/68 |
45 |
45 |
| 2068/69 |
48 |
48 |
| 2069/70 |
46 |
46 |
| 2070/71 |
47 |
47 |
| 2071/72 |
50 |
50 |
NTC is also considered low risk investment as share price of NTC does not fluctuate like of other companies. This is the main reason that the mutual funds and other companies invest in shares of NTC which would act as buffer during crisis.
The share price of NTC scrips only stands at Rs 653 as on May 11, 2015.
