April 12, 2021 (MLN): Pakistan’s national carrier PTCL, leading telecom and ICT service provider has announced its Financial Results for the quarter ended March 31, 2021, as per which the company witnessed a turnaround in profitability.
The net profits of the company clocked in at Rs1.6 billion against the net loss of Rs.406.7 million in the corresponding quarter a year ago.
On the revenue front, PTCL reported Rs.33.9 billion worth of revenues for the period under review which was 6.71% higher compared to the same quarter of the previous year. The gross margins of the company improved to 27% from 25% in the previous quarter.
With regards to the company’s major expense heads, its admin and distribution expenses witnessed a meager increase of 3.3% and 3.5% YoY respectively mainly on the back of cost control initiatives taken by the company.
This coupled with a 44.6% YoY reduction in impairment loss on trade and contract assets translated into a 3.9x increase in PTCL’s operating profit to Rs.2.37 billion.
Another factor that helped the company to turn around its losses was income earned from other sources which jumped by 40% YoY from Rs.2.15 billion to Rs.3 billion.
Moreover, the company paid income tax of Rs.656.5 million as opposed to the tax incentive of Rs.114.7 billion that the company availed in the same quarter last year.
|
Consolidated Financial Results for the Quarter ended March 31, 2021, ended ('000 Rupees) |
|||
|---|---|---|---|
|
|
Mar-21 |
Mar-20 |
%Change |
|
Revenue |
33,959,997 |
31,825,093 |
6.71% |
|
Cost of services |
(24,633,475) |
(23,965,061) |
2.79% |
|
Gross profit |
9,326,522 |
7,860,032 |
18.66% |
|
Administrative and general expenses |
(4,397,138) |
(4,255,705) |
3.32% |
|
Selling and marketing expenses |
(1,925,009) |
(1,860,094) |
3.49% |
|
Impairment loss on trade debts and contract assets |
(630,957) |
(1,138,233) |
-44.57% |
|
|
(6,953,104) |
(7,254,032) |
-4.15% |
|
Operating Profit |
2,373,418 |
606,000 |
291.65% |
|
Other income |
3,010,570 |
2,151,342 |
39.94% |
|
Finance cost |
(3,120,622) |
(3,278,828) |
-4.83% |
|
Profit before tax |
2,263,366 |
(521,486) |
|
|
Provision for income tax |
(656,560) |
114,762 |
|
|
Profit for the period |
1,606,806 |
(406,724) |
|
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