Hefty license and frequency fees drags NTC's net profit down by 32.30 percent

ShareSansar, November 15:

Nepal Doorsanchar Company Limited, which operates NT service, has stated that its net profit has dropped by 32.30 percent or Rs 1.18 arba in the first quarter of the current fiscal year 2070/71.

The state-run telecom giant has stated that “the decrease in profit is substantially due to statutory obligation (increase in license fee and frequency fee) paid by the company.”

Despite posting a remarkable growth in total income of Rs 10.03 arba in the first quarter, up from Rs 9.85 arba in the corresponding quarter, increase in expenditures, especially the license and frequency fees, stunted NTC’s net profit.

It had to pay Rs 1 arba in license fee and Rs 24.96 crore in frequency fee, which in the corresponding quarter was only Rs 67.34 lakh in license fee and Rs 10 crore in frequency fee.

The EPS of the largest capital-based company listed in the stock market stands at Rs 65.55 and net worth per share at Rs 373.64. It has a current ratio of 1.47.