The license renewal fee imposed by government to NTC costs the company 41.64% of decline in net profit

Nepal Doorsanchar Company Limited (NTC) has published the unaudited quarterly report for the fourth quarter of FY 75/76 today. The net profits of the company decrease from Rs 17.48 arba to Rs 10.20 arba in the fourth quarter with a fall of 41.64%.

The decline in net profit is the result of the decline of revenue from customers. The revenue from customers has decreased by Rs 3 arba whereas the expenses of license renewal has increased by Rs 14 arba. Nepal Telecom Company is to pay Rs. 20 arba for renewal its mobile telephone service. The renewal is to be made for the first time in ten years and second time in five years. The Telecom shall pay the amount in five installments. Due to this liability, the company’s profit has largely suffered.

The paid-up capital of the company remains unchanged at Rs 15 arba. The reserves of the company grew by 2.44% to Rs 86.73 arba for the end of the fourth quarter. The investments of the company, which were previously at Rs 10 arba, grew by more than 17.70% to stand at Rs 11.77 arba for the quarter end.

The company has Rs 18.90 arba as cash and cash equivalents with a decline of 19.26% compared to the corresponding quarter.

The annualized EPS of the company currently stands at Rs 63.33, which declined by from Rs 68.05 compared to the corresponding quarter of the previous year.

The net-worth per shares stands at massive Rs 678.21 and quarter end PE stands at 10.94 times.