NTC Profit Increased by 18%, Reaches 8 Billion in FY 078/79

Nepal Telecom (NTC) saw its profit increase by 18% reaching a total of Rs 8 billion, 38 crores, and 88 thousand in the FY 078/79 against the same duration of FY 077/78. In the last FY, the company grew its profit by Rs 1 billion, 25 crores, 6 lakh, and 47 thousand against the previous fiscal year.

In the previous Fiscal Year 077/78, the government-backed operator had generated Rs 7 billion, 12 crores, 94 lakhs, and 41 thousand in profit.

Total Ntc profit in FY 078/79	Total Ntc profit in FY 077/78	Growth	In percentage
Rs 8.39 billion (approx.)	Rs 7.13 billion (approx.)	Rs 1.25 billion↑	18% (approx.)

After reeling from the Covid-19 effects on its earnings, the company has started gradually making strong financial performance. It seems the company could now maintain a positive trajectory for profit.

Check out: Ntc Sees its Profit Decline in Q3 FY 078/79

Total Operating Revenue also increased

At the same time, Ntc also saw its total operating revenue growth in the fourth quarter of FY 078/79. The company generated Rs 37 billion, 88 crores, 99 lakh, and 58 thousand total revenues. This marked an increase of 5.44% over the figure from the same period in the previous fiscal year.

In amount, the increased Total Operating Revenue translated to Rs 1 billion, 95 crores, 42 lakh, and 75 thousand. Meanwhile, in FY 077/78, Ntc collected Rs 35 billion, 93 crores, 56 lakhs, and 83 thousand in Total Operating Revenue.

Total Operating Revenue FY 078/79	Total Operating Revenue FY 077/78	Growth	In percentage
37,88,99,58,000	35,93,56,83,000	1,95,42,75,000↑	5.44

The telco’s total revenue collection also grew by 5% in the same period. In the last fiscal year (till the end of Ashar), Ntc’s total revenue collection stood at Rs 42 billion, 20 crores, 99 lakhs, and 3 thousand. In FY 078/79 for the same duration, the company collected Rs 44 billion, 32 crores, 13 lakhs, and 58 thousand in total revenue.

Total Revenue FY 078/79	Total Revenue FY 077/78	Growth	In percentage
44,32,13,58,000	42,20,99,03,000	2,111,455,000↑	5

Also see: How to transfer balance in Nepal Telecom Mobile?

Ntc enlists reasons for its profit and other financial changes in fourth quarter FY 078/79

The company has identified the following reasons for its overall financial showing in the fourth quarter of FY 078/79.

• Increase in profits from data in GSM service. The company generated 50 crores more from data usage in the given period.
• The expansion of 4G coverage has helped the company increase Rs 2 billion, and 55 crores earnings in GSM Voice service.
• The decrease in interconnection tariff as per the Interconnection Guidelines and the growth of OTT services led to the loss of Rs 70 crore.
• A decrease in the use of Wireline services resulted in a loss of Rs 21 crore in revenues.
• Migrating CDMA to GSM service also incurred the company a loss of Rs 12 crore.

Changes in the revenue from the non-telecom services

• Changes in the interest rates in the banks helped the company earn Rs 77 crore profit from interests.
• It also yielded Rs 37 crore Foreign Exchange Gain due to the changes in the foreign exchange rates.
• A decline in impairment and finance costs as per the accounting and IFRS/NFRS policies.

For the first time, Ntc issued its shareholders 20% bonus shares last year which boosted its paid-up capital to Rs 18 billion. And besides profit growth in Q4 FY 078/79, it has also increased in per-share income. Currently, the company’s per-share profit stands at Rs 46.56.

How do you see Ntc starting to register strong financial performance? Can it maintain the same figures in the coming months? Do share your input in the comments below.