NTC AGM endorses 46% dividend; to distribute dividend warrants from tomorrow

ShareSansar, July 9:

Nepal Doorsanchar Company Limited Annual General Meeting has formally endorsed 46 percent cash dividend to the shareholders from the net profit it posted in the last fiscal year 2069/70.

Following the endorsement of the dividend yesterday, NTC has published a notice today stating that it will start distributing the cash dividend from Thursday.

The dividend warrants can be collected from the office of its issue manager NMB Capital Limited at Babarmahal for all the shareholders living in the capital and from the branches of NTC outside the Kathmandu Valley from 10:00 AM to 3:00 PM Sunday through Thursday and 10:00 AM to 1:00 PM on Friday.

It may be noted that the cash dividend Nepal Telecom is pledging this time around is 2 percent lesser that what it had offered to the shareholders for the fiscal year 2068/69.
 
This despite the fact that the company is capable of distributing more than 100 percent dividend, as its share capital stands at Rs 15 arba and its reserve and surplus stands at more than Rs 40 arba.
 
Nepal Telecom had earned Rs 11.31 arba in profit after tax in the last fiscal year, down from Rs 11.60 arba in the previous fiscal year 2068/69.
 
Earlier this year, the telecom company had earmarked Rs 61 crore 24 lakh 42 thousand for paying out dividends after setting aside the amount to be paid to the government.

At present, Nepal Telecom has a paid up capital of Rs 15 arba.
 
Nepal Telecom, with its growth more or less stagnant for the past few years largely owing to growing competition from the private sector, is seeking to bring in a strategic partner, to rejuvenate the growth.