Nepal Telecom has recorded a substantial 37.35 percent increase in net profit during the first quarter of fiscal year 2083/84, reaching Rs. 1 arba 82 crore 1 lakh despite facing severe flood-related service disruptions and offering free emergency connectivity to affected customers. According to the company's unaudited Q1 financial summary, net profit rose by Rs. 49 crore 49 lakh compared to the Rs. 1 arba 32 crore 51 lakh earned during the same period in the previous fiscal year.
The sharp bottom-line growth was primarily driven by a 5.90 percent reduction in net expenses, which fell by Rs. 48 crore 12 lakh. While employee costs increased following a salary scale revision this fiscal year, lower depreciation expenses combined with impairment reversal adjustments significantly brought down overall net expenditure. Consequently, profit before tax climbed 3.65 percent—or Rs. 10 crore 52 lakh—to reach Rs. 2 arba 98 crore 74 lakh, up from Rs. 2 arba 88 crore 21 lakh a year earlier. The company's annualized earnings per share (EPS) stood at Rs. 40.45.
On the revenue front, total income grew marginally by 0.07 percent, or Rs. 66 lakh 46 thousand, reaching Rs. 9 arba 47 crore 76 lakh compared to Rs. 9 arba 47 crore 10 lakh in the first quarter of the previous fiscal year. Total operating income stood at Rs. 8 arba 67 crore 82 lakh, reflecting a slight rise of Rs. 12 lakh 60 thousand (0.01 percent) over the comparative figure listed as Rs. 8 arba 67 crore 95 lakh in the summary. Meanwhile, earnings before interest, taxes, depreciation, and amortization (EBITDA) declined by 6.13 percent, or Rs. 29 crore 14 lakh, to Rs. 4 arba 45 crore 90 lakh from Rs. 4 arba 75 crore 4 lakh last year.
Natural disasters during the quarter weighed heavily on service sales revenue. Following devastating floods and landslides in the Bhotekoshi area of Rasuwa district on Bhadra 10, telecom infrastructure and commercial activities were disrupted, and Nepal Telecom provided free data and voice services for 17 days to assist affected subscribers. Services were further impacted by the Budhigandaki flood on Ashoj 25, adversely affecting revenue from service sales during the period.
Offsetting the disaster-related losses, growing consumer demand for affordable and high-volume mobile data packages bolstered operating revenue. Operating income from GSM services rose by Rs. 10 lakh 16 thousand, while Fiber to the Home (FTTH) operating revenue expanded by Rs. 4 crore 40 lakh. Moving forward, Nepal Telecom has underscored its continued priority on expanding network coverage and improving service quality in remote and geographically challenging regions, even where operational costs are higher and financial returns remain low.
