Nepal Telecom Q4 earning drops by 16.48% due to Rs 4.33 arba VRS scheme offered to 806 employees; EPS at Rs 81.05

Government owned Nepal Doorsanchar Company Limited (NTC) also known as Nepal Telecom has posted net profit decline by 16.48 percent in the fourth quarter of the last fiscal year 2072/73. According to the financial statement for the fourth quarter of the company published today, its net profit (after tax) drop to Rs. 12.15 arba in Q4 as compared to Rs. 14.55 arba in the corresponding period of the previous fiscal year 2071/72. VRS expenses stand at Rs 4.33 arba. VRS expense refers to the payment made to 806 employees under the voluntary retirement scheme offered by the company. Due to the VRS expenses allocated to the 806 employees its profit has decreased by 16.48%. The total income of NTC rose to Rs.43.44 arba from Rs. 34.24 arba in the previous fiscal year. Likewise, the expenditure of the company has also risen to Rs 26.32 arba in this quarter end as compared to Rs. 22.62 arba in the previous year. The company’s report shows that the ‘operation and maintenance’ costs of Rs.7.42 arba accounted the highest portion of its total expenditure, followed by ‘personal costs’, ‘depreciation’ and ‘license fee’, among other headings. Nepal Telecom has Rs.15 arba paid up capital and has an impressive Rs. 70.46 arba in reserve and surplus. The company’s report also states that it has managed to record a noteworthy growth in performance by expanding its products and services. It has adequate facilities in place and robust cash flows to meet its liquidity requirements for executing its business plans and meeting with any evolving requirements. Nepal Telecom further reported that its EPS now stands at Rs.81.05; P/E ratio at 8.50 times and the net worth per share at Rs.569.74. Its last traded price stood at Rs. 675 as on August 14, 2016.