Air Link's FY23 profit plummets 37% as sales slump by nearly 25%

October 05, 2023 (MLN): Air Link Communication Limited (PSX: AIRLINK) 's profitability declined by 37.22% YoY in FY23, clocking in its profit after tax at Rs960.51 million [EPS: Rs2.504] compared to a profit of Rs1.53 billion [EPS: Rs3.99] in the previous year.

Along with the results, the company announced a final cash dividend of Rs2.5 i.e. 25%

The decline in profitability was attributed to a substantial decline in the company's top line, which marked a fall of 24.88% YoY to Rs36.93bn as compared to Rs49.17bn in SPLY.

Going by the results made available by the company to the PSX, the cost of sales also fell by 24.07% YoY but was not enough to offset the sales decline, which worsened the gross profit by 31.78% YoY to Rs3.53bn in FY23.

However, during the review period, other income expanded by 49.21% YoY to stand at Rs328.87m in FY23 as compared to Rs220.41m in SPLY.

On the expense side, the company observed a decrease in Administrative expenses by 21.57% YoY and other expenses by 28.76% YoY to clock in at Rs770.26m and Rs63.02m respectively during the review period.

The company’s finance costs increased by 55.57% YoY and stood at Rs1.83bn as compared to Rs1.18bn in FY23, mainly due to higher interest rates.

On the taxation front, the company got a tax credit worth Rs92.53m as compared to a tax paid worth Rs1.08bn last year.

Amount in thousand except for EPS

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