Majority of PEs to book profit this fiscal
KATHMANDU, July 12
A majority of public enterprises (PEs) are expected to book profits in the current fiscal year. The Annual Report of Public Enterprises, also commonly called the Yellow Book, that was tabled in the parliament today has said that 22 out of the 32 PEs that are in operation are expected to book profits worth Rs 20.2 billion this fiscal as compared to a profit of Rs 5.05 billion in the previous fiscal.
Nepal Telecom and Nepal Oil Corporation are expected to be the high earners this year as their net profit is estimated to hover around Rs 11.89 billion and Rs 4.72 billion, respectively.
PEs listed under the financial sector category are estimated to make the highest profits. Except for Rastriya Beema Sansthan (Life), the remaining nine state-owned firms under this category are expected to book profits. PEs under this category will generate net profit worth Rs 8.34 billion.
Rastriya Banijya Bank and Agricultural Development Bank are estimated to book profits worth Rs 3.96 billion and Rs 2.31 billion, respectively. NIDC Development Bank is expected to generate profit worth Rs 2.09 billion. Deposit and Credit Guarantee Corporation Ltd has been expected to generate profit worth 489 million, Rastriya Beema Sansthan (Non-life) (Rs 399.5 million), Hydropower Investment and Development Company Ltd (Rs 351.8 million), Nepal Stock Exchange Ltd (Rs 264.8 million), Citizen Investment Trust (Rs 138 million) and Nepal Housing Development Finance Company Ltd (Rs 4.6 million). However, Rastriya Beema Sansthan (Life) is expected to incur loss worth Rs 1.67 billion.
Almost all the PEs ranked under the industrial category are expected to incur losses this fiscal, except Dairy Development Corporation (DDC) and Hetauda Cement Industry Ltd. Altogether seven PEs are listed under this category and two of them — Janakpur Cigarette Factory Ltd and Nepal Drugs Ltd — have been shut down.
DDC and Hetauda Cement are expected to generate profit worth Rs 27.8 million and Rs 131.8 million, respectively. Herbs Production and Processing Company Ltd is estimated to incur loss worth Rs 21.2 million. Udayapur Cement Industry Ltd and Nepal Oriend Magnesite Ltd are expected to make losses worth Rs 201.9 million and Rs 72.4 million, respectively, under industrial sector category.
Under the trading and service sector category one from each sector is in loss. There are six PEs under trading sector and seven under service sector. National Trading Ltd, under trading sector category, is expected to bear loss worth Rs 76.1 million and National Productivity and Economic Development Centre Ltd under service sector is estimated to incur loss worth Rs 11.8 million this year. PEs under trading sector are expected to earn net profit worth Rs 4.94 billion and those under service sector are estimated to earn profit worth Rs 1.81 billion this fiscal.
From the social and public utility sector, one public corporation from each category is expected to generate profit. There are five PEs, namely, Cultural Corporation, Gorkhapatra Corporation, Janak Education Materials Centre Ltd, Nepal Television and Rural Housing Company Ltd under social sector category and three from public utility sector — Nepal Water Supply Corporation, Nepal Electricity Authority and Nepal Telecom Ltd.
Among them, Gorkhapatra Corporation is expected to make profit worth Rs 39.7 million and Nepal Telecom Ltd is also estimated to generate profit worth Rs 11.89 billion. Loss of social sector category PEs will be around Rs 67.5 million and profit of public utility sector category is estimated to stand at Rs 5.32 billion.
Of the 37 PEs in total, five were shut down, namely, Janakpur Cigarette Factory, Nepal Drugs Ltd, National Construction Company Nepal Ltd, Nepal Engineering Consultancy Service Centre Ltd and Rural Housing Company Ltd and the government has laid off staff from all these closed PEs except Nepal Drugs Ltd, where 230 people are employed.