Nepal Telecom profit increases by 12.48 per cent

KATHMANDU, FEB 6: 

Nepal Telecom (NT) posted a 12.48 per cent surge in its profit after tax in the last fiscal year 2010-11.

“The company has posted Rs 12.12 billion profit after income tax — up from Rs 10.77 billion in the previous fiscal year 2009-10,” managing director at the company Amar Nath Singh said during its 22th anniversary today.

The company has a target to register Rs 31 billion pre-tax profit. “The overall growth rate for the first half of the current fiscal year is in line with its projection,” he added. Nepal Telecom’s management committee has also proposed 45 per cent cash dividend to its shareholders based on its profit for fiscal year 2010-11. Finance Ministry has signaled that it will approve proposal next week.

“Ministry of Information and Communication is yet to forward the file to the Finance Ministry,” said joint secretary at the ministry Baikuntha Aryal,” After we get the proposal, we will pass it immediately.”

Similarly, NT has claimed that the overall financial health of the company is satisfactory, and “it is optimistic that the government will allow the company to introduce a strategic partner within six months,” Singh said.

Nepal Telecom’s subscriber base has also swelled rapidly to 7.3 million till mid-January from 0.4 million eight years ago, he revealed.

Minister of State for Information and Communications Surita Kumari Saha has emphasised on the need to make Nepal Telecom capable in providing quality telecommunication services to the people.

Secretary at the Ministry Awanindra Kumar Shrestha said NT can sustain the competition if the services are made qualitative and unwarranted burdens are relaxed for the public entity.

Source: THT