PTCL Q2 2024 profits plunge 53%

July 19, 2024 (MLN): Pakistan Telecommunication Company Limited (PSX: PTC) experienced a fall of 53.3% YoY in its profitability in the second quarter of 2024, with its profit after tax falling to Rs705.82 million [EPS: Rs0.14].

That compares with a profit of Rs1.51 billion [EPS: Rs0.30] earned in the same period last year (SPLY).

Going by the results, the company's top line expanded by 11.7% YoY to Rs26.78bn as compared to Rs23.97bn in SPLY.

The cost of sales also rose by 6.5% YoY but was lesser than proportionate to sales rise, which improved the gross profit by 30.3% YoY to Rs6.79bn in Q2 2024.

The gross margins improved to 25.35% as compared to 21.74% in SPLY.

During the period under review, other income increased by 28.5% YoY to stand at Rs4.1bn in Q2 2024 as compared to Rs3.19bn in SPLY.

On the expense side, the company's administrative expenses rose 4.0% YoY to Rs2.2bn, and selling and distribution expenses rose 3.5% YoY to Rs1.19bn.

The company’s finance cost jumped significantly by 158.2% YoY and stood at Rs5.7bn as compared to Rs2.21bn in SPLY, mainly due to higher interest rates.

On the tax front, the company paid a lower tax worth Rs421.73m against the Rs976.43m paid in the corresponding period of last year, depicting a fall of 56.8% YoY.

Amount in thousand except for EPS

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