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PTCL’s profitability balloons by 88x in 2HFY21

July 15, 2021 (MLN): Pakistan Telecommunication Company Limited (PTCL) has unveiled its financial results on July 14, 2021 for the six months ended June 30, 2021. As per results, the company has posted remarkable financial numbers as its bottom line for the period ballooned by 88x YoY to clocked in at Rs2.93billion, when compared to Rs33.33million in the same period last year (SPLY).

The outstanding surge in the profit is primarily based on the substantial increase in the company’s topline along with notable up in other income.

According to the financial statement sent to PSX, the revenue of the company climbed up by 7.86% YoY to stood at Rs67.85bn, compared to 63bn in the corresponding period of FY20. Meanwhile, the cost of services reached 49.89bn, depicting an increase of 5.2% YoY in SPLY.

Subsequently, the gross margins of the company improved from 25% in 2HFY20 to 26% in 2HFY21.

Going in to the details, administrative and general expenses grew by 8.12% YoY and clocked in at Rs8.88bn as compared to the corresponding period last year. In the same period, the company has also increased its selling and marketing expenditures by 10.66% YoY to Rs3.88bn owing to increase in the business activities.

This coupled with a 39.7% YoY reduction in impairment loss on trade and contract assets translated into a 2.2x YoY increase in PTCL’s operating profit to Rs3.99bn.

The other income of the company jumped by 24.11% YoY to Rs4.56bn. Meanwhile, finance cost of the company declined by 14.6% YoY to Rs4.52bn on the back of low policy rate by SBP.

To note, during the period the company paid hefty amount in terms of taxes which showcased a hike of nearly RS999mn, stood at Rs1.09bn as compared to Rs94.92mn paid during SPLY.

 

Consolidated Financial Results for the Six Months ended June 30, 2021 ('000 Rupees)

 

Jun-21

Jun-20

%Change

Revenue

67,846,127

62,904,468

7.86%

Cost of services

(49,886,214)

(47,419,111)

5.20%

Gross profit

17,959,913

15,485,357

15.98%

Administrative and general expenses

(8,880,527)

(8,213,563)

8.12%

Selling and marketing expenses

(3,881,790)

(3,507,717)

10.66%

Impairment loss on trade debts and contract assets

(1,209,556)

(1,995,059)

-39.37%

 

(13,971,873)

(13,716,339)

1.86%

Operating Profit

3,988,040

1,769,018

125.44%

Other income

4,555,999

3,671,082

24.11%

Finance cost

(4,522,761)

(5,311,856)

-14.86%

Profit before tax

4,021,278

128,244

3035.65%

Provision for income tax

(1,086,351)

(94,919)

1044.50%

Profit for the period

2,934,927

33,325

8706.98%

 

Copyright Mettis Link News

Posted on: 2021-07-15T13:59:00+05:00

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