Air Link achieves profit growth despite revenue decline

MG News | September 29, 2025 at 01:02 PM GMT+05:00
September 29, 2025 (MLN): Air Link Communication Limited (PSX: AIRLINK) has concluded its fiscal year with a remarkable performance, showcasing a period of enhanced profitability and strategic cost management.
The company's latest financial results highlight a
significant improvement in its financial health, delivering a strong
performance that imphasizes its solid financial position despite a challenging
revenue environment.
According to the financial data, AIRLINK's revenue from
contracts with customers saw a contraction of 19.55%, reaching Rs104.38bn in
FY25, down from Rs129.74bn in FY24.
This decrease, however, was accompanied by a steeper
decline in the cost of revenue, which fell by 22.25%, a testament to the
company's focus on operational efficiency.
This strategic management led to a significant increase
in profitability. The company's gross profit grew by an impressive 13.94% to
Rs11.01bn.
A key factor in this performance was the expansion of the
gross profit margin, which improved to 10.55% in FY25 from 7.45% in FY24, showing
the company's ability to control its core costs more effectively than the
decline in its sales.
The company's profit for the year also saw a notable jump
of 2.65%, climbing to Rs4.75bn from Rs4.63bn.
This strong bottom line growth was achieved despite a
proportional increase in operational expenses and finance costs, which grew by
25.31% and 32.62% respectively.
This demonstrates AIRLINK's successful strategy to
leverage cost efficiencies and a stronger gross margin to deliver overall
profit growth.
Furthermore, the net profit margin expanded to 4.55% in
FY25 from 3.56% in FY24, reinforcing the positive impact of the company's
strategic financial management.
The company's earnings per share (EPS) also saw a
commendable increase of 2.65%, rising to Rs12.01 in FY25 from Rs11.70 in the
previous year.
This strong performance, in the face of a contracting
top-line and rising operational costs, emphasizes AIRLINK’s commitment to
delivering value to its shareholders through enhanced profitability and a focus
on core business efficiency.
CONSOLIDATED STATEMENT
OF PROFIT OR LOSS FOR THE YEAR ENDED JUNE 30, 2025 (Rs.) |
|||
Description |
2025 |
2024 |
Change% |
Revenue from contracts
with customers - net |
104,379,101,499 |
129,742,418,267 |
-19.55% |
Cost of revenue |
(93,364,500,346) |
(120,075,740,015) |
-22.25% |
Gross profit |
11,014,601,153 |
9,666,678,252 |
13.94% |
Administrative expense |
(1,102,025,347) |
(854,469,658) |
28.97% |
Selling and distribution
costs |
(368,405,803) |
(318,952,128) |
15.51% |
Operating profit |
9,544,170,003 |
8,493,256,466 |
12.37% |
Other income |
883,137,308 |
562,833,588 |
56.91% |
Other expense |
(276,697,182) |
(479,422,336) |
-42.29% |
Finance cost |
(3,944,423,730) |
(2,974,132,186) |
32.62% |
Profit before income tax
and levy |
6,206,186,399 |
5,602,535,532 |
10.77% |
Profit before income tax |
6,206,186,399 |
5,602,535,532 |
10.77% |
Income tax |
(1,458,245,210) |
(977,037,427) |
49.25% |
Profit for the year |
4,747,941,189 |
4,625,498,105 |
2.65% |
Earnings per share -
basic and diluted |
12.01 |
11.7 |
2.65% |
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