April 9, 2020 (MLN): Pakistan Telecommunication Company Limited (PTCL) has announced its financial results for the first quarter of CY20 ended March 31, 2020. As per the results, the company has incurred losses worth Rs 406 million compared to net profits of Rs 1.99 billion of the corresponding period of last year.
The company’s gross profits plunged by around 19% YoY due to a decline in sales revenue by 5% despite a meagre increase of 0.58% YoY in the cost of sales, shrinking gross margins from 29% to 25%.
On the expense front, the administrative and general cost of the company reached to Rs 4.37 billion, up by 7% YoY owing to augmented distribution activities. The company bore selling and marketing cost which hiked to Rs 1.80 billion i.e. 4.47% YoY higher than the same period of last year owing to augmented distribution activities.
Another blow came from high impairment losses on trade debts and contract assets which went up by 86% YoY to Rs 1.14 billion.
On the other hand, other income jumped by around 46% YoY to Rs 2.15 billion.
Meanwhile, the substantial growth was recorded in the finance cost of the company which surged by 69 times YoY to Rs 3.27 billion. However, a tax reversal of Rs 114 million came as a breather in the bottom line.
|
Consolidated Financial Results for the Quarter ended March 31, 2020 ended ('000 Rupees) |
|||
|---|---|---|---|
|
|
Mar-20 |
Mar-19 |
%Change |
|
Revenue |
31,825,093 |
33,534,964 |
-5.10% |
|
Cost of services |
(23,901,901) |
(23,764,414) |
0.58% |
|
Gross profit |
7,923,192 |
9,770,550 |
-18.91% |
|
Administrative and general expenses |
(4,373,912) |
(4,075,781) |
7.31% |
|
Selling and marketing expenses |
(1,805,047) |
(1,732,766) |
4.17% |
|
Impairment loss on trade debts and contract assets |
(1,138,233) |
(609,345) |
86.80% |
|
|
(7,317,192) |
(6,417,892) |
14.01% |
|
Operating Profit |
606,000 |
3,352,658 |
-81.92% |
|
Other income |
2,151,342 |
1,469,732 |
46.38% |
|
Finance cost |
(3,278,828) |
(1,940,370) |
68.98% |
|
(Loss)/Profit before tax |
(521,486) |
2,882,020 |
– |
|
Provision for income tax |
114,762 |
(884,106) |
– |
|
(Loss)/Profit for the period |
(406,724) |
1,997,914 |
– |
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