(NTC) Nepal Telecom Sees Nearly 49% Drop in Profit in Q3 FY 2081; Revenue and Income Also Decline

Kathmandu, — Nepal Telecom (Nepal Doorsanchar Company Limited) has published its unaudited financial report for the third quarter ending Chaitra 2081, showing a significant downturn in profitability and overall income compared to the same period last fiscal year.

According to the data, the company’s profit for the year dropped sharply by 48.67%, falling to Rs. 2.84 billion from Rs. 5.53 billion in the third quarter of FY 2080. This major decline highlights operational challenges and a fall in key income streams.

One of the major contributors to this profit slump is a notable decline in Finance Income, which plummeted by 46.02%from Rs. 519.3 million to Rs. 280.3 million. Additionally, revenue from core operations, listed as Revenue from Contract with Customers, also dipped slightly by 0.64%, totaling Rs. 25.31 billion, compared to Rs. 25.48 billion in the same quarter last year.

The company’s total income saw a downturn of 8.89%, decreasing from Rs. 31.20 billion in Chaitra 2080 to Rs. 28.43 billion in Chaitra 2081. This broad decline across major income categories signifies mounting pressure on the company's revenue-generating capacity.

On the equity front, Equity Share Capital remained unchanged at Rs. 18 billion, reflecting no new capital infusion or dilution during the year. However, Reserve and Surplus decreased by 3.40%, from Rs. 75.26 billion to Rs. 72.71 billion, indicating erosion in retained earnings due to falling profits.

The company’s Earnings Per Share (EPS) has nearly halved, coming down from Rs. 41.02 to Rs. 21.05, suggesting reduced returns for shareholders. Meanwhile, the Net Worth Per Share has slightly decreased to Rs. 503.93 from Rs. 512.99, likely due to the drop in reserves. The current Price-to-Earnings (PE) ratio stands at 42.74, indicating that the stock may be overvalued given the reduced earnings.

This performance report signals a challenging period for Nepal Telecom, which will need to address declining income and profitability to maintain investor confidence and improve shareholder returns in the coming quarters.