August 28, 2024 (MLN): Pakistan Telecommunication Company Limited (PSX: PTC) reported a sharp increase in consolidated losses for the quarter ending June 30, 2024, with losses widening by over 60% to Rs3.4 billion.
This contrasts sharply with the Rs2.12bn loss recorded in the same quarter of 2023, underscoring the company's escalating financial difficulties.
According to the results, the company's top line went up 21.3% to Rs55.85bn compared to Rs46.04bn in Q2 CY23.
The cost of sales also rose by 11.3% but as the growth in sales was of a higher proportion, the company's gross profit improved by 58.8% to Rs15.47bn in Q2 2024.
Accordingly, the gross margins improved to 27.7% as compared to 21.2% in SPLY.
On the expense side, the company's administrative expenses and selling and distribution expenses increased by 29.4% and 22.9% YoY, respectively.
During the period under review, other income fell by 28.7% to stand at Rs4.76bn in Q2 2024 as compared to Rs6.68bn in SPLY.
The company’s finance cost surged by 28.9% and stood at Rs12.74bn as compared to Rs9.89bn in SPLY, mainly due to higher interest rates.
On the tax front, the company paid a higher tax worth Rs2.08bn against the Rs1.15bn paid in the corresponding period of last year, depicting an increase of 81.7%.
To sum up, PTCL's losses widened this quarter despite a rise in sales due to a substantial increase in operating expenses, higher finance costs, and increased taxation.
Additionally, a significant drop in the company's other income further exacerbated the financial challenges.
| Consolidated (un-audited) Financial Results for quarter ended June 30, 2024 (Rupees in '000) | |||
|---|---|---|---|
| Jun 24 | Jun 23 | % Change | |
| Sales | 55,847,697 | 46,036,220 | 21.31% |
| Cost of services | (40,381,860) | (36,294,707) | 11.26% |
| Gross Profit/ (loss) | 15,465,837 | 9,741,513 | 58.76% |
| Administrative Expenses | (7,995,014) | (6,178,943) | 29.39% |
| Selling And Distribution Expenses | (3,294,950) | (2,680,143) | 22.94% |
| Impairment loss on trade debts and contract assets | (1,678,421) | (942,436) | 78.09% |
| Other Income | 4,759,889 | 6,677,962 | -28.72% |
| Finance Cost | (12,744,989) | (9,887,989) | 28.89% |
| Profit/ (loss) before taxation | (5,487,648) | (3,270,036) | 67.82% |
| Taxation | 2,084,565 | 1,147,369 | 81.68% |
| Net profit/ (loss) for the period | (3,403,083) | (2,122,667) | 60.32% |
Amount in thousand except for EPS
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Posted on: 2024-08-28T11:22:41+05:00
