January 30, 2024 (MLN): Air Link Communication Limited (PSX: AIRLINK) reported a profit after tax of Rs2.04 billion [EPS: Rs5.17] for 1HFY24, marking a significant growth of 2.58x YoY, compared to a profit of Rs791.78m [EPS: Rs2.05] in the same period last year (SPLY).
As the company's profit surged, the Board of Directors (BoD) declared an interim cash dividend for the quarter ended on 31 December 2023 at Rs. 2 per share i.e. 20%.
Going by the results, the company's top line soared by 2.6x YoY to Rs60.59bn as compared to Rs23.29bn in SPLY.
Similarly, the cost of sales experienced a 2.65x increase, but it was less than proportionate to the sales increase. This improvement resulted in a 2.14x YoY growth in gross profit, reaching Rs4.36bn in 1HFY24.
During the review period, administrative expenses surged to Rs836.95m, while other expenses reached Rs118.47m on the earnings' expenditure side.
On the other hand, AIRLINK was able to reduce its Sales and marketing expenses by 35.64% YoY to Rs112.97m in 1HFY24.
The massive growth in other income also supported the company's earnings. During the six months, other income stood at Rs161.14m in 1HFY24 as compared to Rs98.574m in SPLY.
The company’s finance costs grew by 16.05% YoY and stood at Rs1.11bn as compared to Rs960.66m in 1HFY23, mainly due to higher interest rates.
On the tax front, the company paid a tax expense worth Rs297.67m, against a tax rebate of Rs329.44m recorded in the SPLY.
| Consolidated (un-audited) Financial Results for six months ended 31 December 2023 (Rupees in '000) | |||
|---|---|---|---|
| Dec 23 | Dec 22 | % Change | |
| Sales | 60,594,001 | 23,288,082 | 160.19% |
| Cost of sales | (56,232,468) | (21,250,704) | 164.61% |
| Gross Profit | 4,361,532 | 2,037,378 | 114.08% |
| Sales and marketing expenses | (112,974) | (175,536) | -35.64% |
| Administrative expenses | (836,950) | (513,190) | 63.09% |
| Other expenses | (118,472) | (24,232) | 388.91% |
| Other Income | 161,143 | 98,574 | 63.47% |
| Finance cost | (1,114,830) | (960,657) | 16.05% |
| Profit before taxation | 2,339,449 | 462,337 | 538.00% |
| Taxation | (297,668) | 329,439 | – |
| Net profit for the period | 2,041,781 | 791,776 | 157.87% |
| Basic earnings/ (loss) per share | 5.17 | 2.05 | – |
Amount in thousands except for EPS
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Posted on: 2024-01-30T12:09:20+05:00
