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This report analyzes the financial performance of Nepal Telecom for the fiscal year 2079/80, highlighting key financial ratios such as a net profit margin of 17.87% and a current ratio of 2.26. The findings indicate strong profitability and liquidity, while suggesting improvements in asset utilization and investment in digital infrastructure. Recommendations include reducing overhead costs and exploring regional expansion for sustained growth.

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6 views5 pages

Inbound 7637407335204873081

This report analyzes the financial performance of Nepal Telecom for the fiscal year 2079/80, highlighting key financial ratios such as a net profit margin of 17.87% and a current ratio of 2.26. The findings indicate strong profitability and liquidity, while suggesting improvements in asset utilization and investment in digital infrastructure. Recommendations include reducing overhead costs and exploring regional expansion for sustained growth.

Uploaded by

adhikariroshni706
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Financial Performance Analysis of Nepal

Telecom
Submitted by: Roshni Adhikari

Level: BBS 4th Year

Submitted to: Faculty of Management, Tribhuvan University

Date: 2081/03/02
Acknowledgement

I would like to express my heartfelt gratitude to my respected teacher for providing proper
guidance during the preparation of this report. I am also thankful to Nepal Telecom and the
Faculty of Management for offering the platform to conduct this study.
Table of Contents
1. Introduction

2. Objectives of the Study

3. Methodology

4. Overview of Nepal Telecom

5. Analysis of Financial Performance

6. Major Findings

7. Conclusion and Suggestions

8. References
1. Introduction

Nepal Telecom is one of the largest telecommunication service providers in Nepal. This
report presents an analysis of the financial performance of Nepal Telecom for the fiscal year
2079/80, using key financial ratios to evaluate profitability, liquidity, and operational
efficiency.

2. Objectives of the Study

- To assess the financial position of Nepal Telecom.


- To analyze key financial ratios.
- To suggest strategies for improved performance.

3. Methodology

This study is based on secondary data collected from Nepal Telecom’s annual reports. The
tools used for analysis include ratio analysis and simple trend comparisons.

4. Overview of Nepal Telecom

Established in 1975, Nepal Telecom is a government-owned enterprise providing mobile,


landline, internet, and related services across the country. It is listed on the Nepal Stock
Exchange and has a dominant market share in the telecom sector.

5. Analysis of Financial Performance


Net Profit Margin: 17.87%

Return on Equity (ROE): 12.00%

Current Ratio: 2.26

Asset Turnover Ratio: 0.35


Figure: Key Financial Ratios of Nepal Telecom (2079/80)

6. Major Findings

- The company shows strong profitability and a high return on equity.


- Liquidity is healthy with a current ratio above 2.
- Asset utilization efficiency is at a moderate level.

7. Conclusion and Suggestions

Nepal Telecom remains financially sound with strong profitability and liquidity. However, it
is recommended that the company continue investing in digital infrastructure, reduce
overhead costs, and explore regional expansion for sustained growth.

8. References

- Nepal Telecom Annual Report 2079/80


- www.ntc.net.np
- Financial Management by I.M. Pandey

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