Nepal Telecom's EPS rises by 13.15% to Rs 100.11, Reserve at Rs 78.06 arba & Net worth per share at Rs 620.46

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 rise of 13.12 % in the fourth quarter of the fiscal year 2073/74. As per the unaudited report for the fourth quarter published by the company today, NTC has reported net profit (after tax) of Rs 15.01 arba in the fourth quarter of the fiscal year 2073/74 up from Rs 13.68 arba in the corresponding quarter of the fiscal year 2072/73. Nepal Telecom has Rs.15 arba paid up capital and has huge reserve of Rs. 78.06 arba in reserve and surplus. The company’s total income slightly inclined to Rs 44.83 arba in the Q4 from Rs 44.20 arba in the corresponding quarter. Likewise, its total expenditure has also declined to Rs 24.36 arba from Rs 25.98 arba. NTC has an investment of Rs 7.87 arba in Q4 up from Rs 6.63 arba in the previous corresponding quarter in non current assets. Its earning per share has inclined to Rs 100.11 in Q4 compared to Rs 88.47 in the corresponding quarter. Its net worth per share stand at Rs 620.46 and P/E ratio is at Rs 6.74 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 landscapes well as increase in competition and operating expenses. NTC is the company which provides huge cash dividends to its shareholders from the profit it earned. Thus, it seems to be suitable for those investors who wants to avail cash dividends rather than bonus shares.