Nepal Telecom (NT) has projected a dramatic drop in its gross income growth rate in the current fiscal year compared to last fiscal year.
The gross income growth rate will decrease to 4.17 per cent in the current fiscal year compared to the growth rate of 9.65 per cent in the last fiscal year (2010-11), the company said during its fourth annual general meeting here today. "It had registered 22.30 per cent gross income in the fiscal year 2009-10 compared to a fiscal year ago."
The gross income of the company touched Rs 29.85 billion in the last fiscal year 2010-11 as compared to Rs 27.22 billion in fiscal year 2009-10. "The gross income of the company will touch Rs 31.09 billion this fiscal year,” estimated Nepal Telecom that has witnessed a huge increase in administrative and employee expenses.
Share holders of the company — that has listed 150 million unit shares at a face value of Rs 100 per unit at Nepse — will get Rs 45 per unit as cash dividend from last fiscal year's profit. Its shares were traded at Rs 402 per unit today at the secondary market.
"NT spent a total of Rs 3.68 billion on its employees during fiscal year 2010-11 as compared to Rs 2.61 billion a fiscal year ago," according to the report distributed at the AGM.
"Similarly, its administrative cost also increased to Rs 1.52 billion in fiscal year 2010-11 from Rs 1 billion in fiscal year 2009-10."
The company contributed Rs 16.27 billion as revenue during the last fiscal year. It had contributed Rs 15.80 billion as revenue in the previous fiscal year.
Declining trend of gross income growth rate
Fiscal Year – Growth Rate – Amount
2009-10 — 22.30pc — Rs 27.22 billion
2010-11 — 9.65pc – Rs 29.85
2011-12 — 4.17pc — Rs 31.09 (projected)