Telecard's profit plummets nearly 90% as tax expenditure soars

October 14, 2024 (MLN): Telecard Limited (PSX: TELE) saw its earnings for the year ended June 30, 2024, plummet by nearly 90%, reporting a profit of just Rs34.64 million [EPS: Rs0.03] compared to Rs324.44 million [EPS: Rs0.85] in the previous fiscal year

According to the profit and loss account, the sharp increase in tax expenditure was the primary reason for the decline in profit.

This occurred despite strong sales performance, with the company recording revenues of Rs10.8 billion, an 89.8% increase compared to Rs5.69 billion in FY23.

The cost of sales rose by 125.3% but the growth in sales outpaced, which improved the gross profit by 16.0% to Rs2.14bn in FY24.

On the expense side, the company's administrative and distribution expenses rose 22.8% YoY to Rs1.49bn.

Meanwhile, other operating expenses fell 73.4% YoY to Rs19.46m.

The company’s finance cost remained relatively unchanged at Rs156.01m in FY24.

On the tax front, the company paid a higher tax worth Rs445.6m against the Rs82.83m paid in the corresponding period of last year, depicting a rise of 438%.

Amount in thousand except for EPS

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