Nepal Telecom reports marginal profit in Q2 as growth remains largely static

ShareSansar, February 12:

Nepal Doorsanchar Company Limited aka Nepal Telecom has reported a marginal profit rise of 0.72 percent in the second quarter of the current fiscal year 2070-71.

According to the unaudited report for the second quarter published today by the state-run telecom giant, its net profit has surged to Rs 5.59 arba in the second quarter, up from Rs 5.55 arba in the corresponding quarter of the last fiscal year.

The profit remained more or less static as its income from services rose only marginally to Rs 17.81 arba in the second quarter up from Rs 16.81 arba in the corresponding quarter.

Nepal Telecom has also provisioned Rs 1.9 arba for the income tax.

Its EPS now stands at Rs 74.57 and net worth per share at Rs 395.86.

Despite such a remarkable growth the company, in its quarterly report, has noted that market competition (especially from NCell), global development of technologies as well as illegal transactions in international calls and changes in tastes and preferences of customers are some of its major external challenges.

Similarly, change in the work style of employees as well as improving the quality of services it provides  as well as expansion of its services are the major internal challenges.