Nepal Telecom Limited (NTC) has reported a sharp drop in net profit, even though its operating income remained nearly the same.
How much did NTC profit fall?
NTC has earned a net profit of NRs 2.66 arba in the current fiscal year, down from NRs 6.23 arba in the same period of the previous fiscal year. NTC’s net profit fell from NRs 6.23 arba last year to NRs 2.66 arba this fiscal year. This is a decline of more than 50 percent, which has caught the attention of investors and analysts. Despite the fall in profit, the company’s operating income stayed stable. NTC earned NRs 34.56 arba, slightly higher than NRs 34.53 arba in the same period last year.
The company has not given full details about the reasons for the profit decline. Experts suggest that higher costs and increased operational expenses could be major factors.
Investors are now closely watching market how Nepal Telecom will manage costs and try to improve its profits in the coming months.
