Nepal Telecom Q4 Results: Revenue Rs. 38.7B, Net Profit Rs. 2.67B, EPS Down to 14.82

Nepal Doorsanchar Company Limited (NTC) has published its audited financial results for the fourth quarter of fiscal year 2024/25. The telecom giant has reported slightly weaker revenue and profits compared to the previous year, but continues to maintain strong margins and market leadership.

The company’s total revenue stood at Rs. 38.73 billion in Q4, down marginally by 1.06% compared to Rs. 41.61 billion in the same quarter last year. Sequentially, revenue has been gradually declining over the past three quarters, reflecting saturation in telecom services and stiff market competition.

Gross profit amounted to Rs. 32.84 billion, compared to Rs. 34.97 billion a year earlier. The gross margin remained very strong at 84.81%, indicating efficient cost management despite revenue contraction.

On the bottom line, NTC reported a net income of Rs. 2.67 billion in Q4, less than half of the Rs. 6.61 billion recorded in the same quarter of the previous year. The net profit margin also dropped to 6.89% from 15.9% a year ago, showing increased expense pressures and declining profitability.

Key shareholder indicators softened. EPS (annualized) fell to Rs. 14.82, down from Rs. 36.77 last year, while the price-to-earnings (PE) ratio increased to 59.18, signaling relatively high valuations compared to weaker earnings. The book value per share decreased to Rs. 495.33 from Rs. 525.43, while the market value per share closed at Rs. 877.27, up from Rs. 845.00 a year ago, reflecting moderate investor confidence.

Returns have also contracted. Return on Assets (ROA) dropped to 2.11% from 4.27% and Return on Equity (ROE) fell to 2.89% from 7.08%. The company did not announce any dividend for this quarter, whereas last year shareholders had received Rs. 30 per share.

Overall, Nepal Doorsanchar Company Limited continues to maintain strong operating margins, but declining revenue, shrinking profits, and weaker returns indicate challenges ahead. The company may need to diversify into new services and digital innovations to maintain growth and shareholder value.