Air Link Communication profit falls 45%

October 28, 2024 (MLN): Air Link Communication Limited (PSX: AIRLINK) posted a 44.6% decline in first-quarter profits as its expenses jumped.

The company earned a profit after tax of Rs351.76 million [EPS: Rs0.89] during the quarter ending September 2024, down 44.6% from the profit of Rs634.83m [EPS: Rs1.66] in the same period last year (SPLY).

Revenue fell 6.9% to Rs13.14bn as compared to Rs14.12bn in SPLY.

However, the cost of sales also decreased by 7.5%, which improved the gross profit by 0.4% to Rs1.11bn in Q1 FY25.

The gross margins rose to 8.4% as compared to 7.8% in SPLY.

During the period under review, other income jumped notably by 473.0% to stand at Rs85.03m in Q1 FY25 as compared to Rs14.84m in SPLY.

On the expense side, the company's administrative expenses rose 30.3% from a year ago to Rs264.02m, selling and distribution expenses rose 95.6% to Rs92.46m, and other operating expenses rose to Rs32.09m.

The company’s finance cost inflated by 73.1% and stood at Rs347.87m as compared to Rs200.94m in SPLY, mainly due to higher interest rates.

On the tax front, the company paid a higher tax worth Rs106.68m against an expense paid worth Rs34.44m in the corresponding period of last year, a rise of 209.8%.

This translates to an effective tax rate of 23.3% as compared to 5.1% in SPLY.

Amount in thousand except for EPS

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