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PTCL cuts losses to Rs4.79 billion in Q3 FY24

Company's revenue saw a 13.9% year-on-year increase, reaching Rs49.2 billion, up from Rs43.19 billion in the same period last year

By Our Correspondent
April 19, 2024
The picture shows a building of Pakistan Telecommunication Company Limited (PTCL). — PPI/File
The picture shows a building of Pakistan Telecommunication Company Limited (PTCL). — PPI/File

KARACHI: Pakistan Telecommunication Company Limited on Thursday reported a fall in losses to Rs4.79 billion in the third quarter of FY24, marking a significant improvement from a loss of Rs5.72 billion in the same period last year.

The company's revenue saw a 13.9 percent year-on-year increase, reaching Rs49.2 billion, up from Rs43.19 billion in the same period last year, the telecom firm said in a filing to Pakistan Stock Exchange. However, a 20.0 percent year-on-year increase in the cost of sales led to an 8.6 percent year-on-year fall in gross profit, which stood at Rs8.36 billion in 3QFY24.

Gross margins deteriorated to 16.99 percent, compared to 21.17 percent in the same period last year. Other income also saw a significant decrease, shrinking by 52.7 percent year-on-year to Rs6.94 billion in 3QFY24, down from Rs14.67 billion in the same period last year.

On the expense side, the company observed an increase in administrative and general expenses by 21.6 percent year-on-year and selling and marketing expenses by 8.3 percent year-on-year, amounting to Rs6.78 billion and Rs2.62 billion respectively.

The company's finance cost went down significantly by 41.1 percent year-on-year, standing at Rs13.54 billion, compared to Rs23 billion in 3QFY23. On the tax front, the company earned a higher tax credit worth Rs2.49 billion, up by 14.4 percent year-on-year from the Rs2.17 billion paid in the corresponding period of last year.

Teh company in a statement said the PTCL group upheld its momentum and strengthened its position in Q1 2024, as a major telecom service provider in Pakistan. "Revenue growth was largely due to strong performance in the consumer segment, boosted by significant growth in fixed broadband, mobile data and business solutions."

Engro Fertilizers Q1 profit skyrockets by 145 percent Engro Fertilizers Ltd reported a 145 percent surge in its first-quarter profit on Thursday, driven by a rise in sales.

The company, in a consolidated statement to the Pakistan Stock Exchange, reported a net profit of Rs10.783 billion for the quarter ending March 31, a significant increase from Rs4.404 billion during the same period last year.

Engro Fertilizers also declared an interim cash dividend of Rs8 per share.Earnings per share (EPS) were reported at Rs8.08, more than double the Rs3.30 per share reported in the same period last year.

The company’s revenue rose by 61.4 percent year-on-year to Rs53.8 billion, up from Rs33.33 billion in the previous year. Despite a 43.8 percent year-on-year increase in the cost of sales, the rise was less than proportional to the sales increase, leading to a 112.3 percent year-on-year improvement in gross profit to Rs18.23 billion in 1QFY24.

Gross margins improved to 33.88 percent, compared to 25.77 percent in the previous year.However, other income decreased by 46.3 percent year-on-year to Rs1.7 billion in 1QFY24, down from Rs3.17 billion in the previous year.

On the expense side, administrative expenses rose by 99.7 percent year-on-year and other expenses by 80.0 percent year-on-year, reaching Rs1.1 billion and Rs1.06 billion respectively.

The company’s finance cost contracted by 65.4 percent year-on-year to Rs158.37 million, down from Rs457.04 million in the previous year.On the tax front, the company paid a significantly larger tax of Rs5.01 billion, a 2.88x year-on-year increase from the Rs1.74 billion paid in the corresponding period of last year.

Meezan Bank’s Q1 profits soar by 65pc amidst rising incomeMeezan Bank Limited, Pakistan’s largest Islamic Bank, reported a 65 percent surge in its first-quarter net profit on Thursday, driven by a rise in profit-earned income.

The bank reported a net profit of Rs25.544 billion for the quarter ending March 31, a significant increase from Rs15.526 billion during the same period last year, according to a statement to the Pakistan Stock Exchange.

In addition, the bank declared an interim cash dividend of Rs7 per share.Earnings per share (EPS) were reported at Rs14.13, a substantial rise from Rs8.63 during the corresponding quarter last year.

The bank’s profit from Islamic financing for the quarter escalated to Rs119.145 billion, compared with Rs81.988 billion during the same quarter a year earlier. The profit/return on deposits also remained higher at Rs51.588 billion, up from Rs40.920 billion a year ago.

The bank's profit margin in 1QCY24 stood at 56.7 percent, higher than the 50.09 percent during the same period last year. This was driven by a sharp 45 percent year-on-year spike in profit/return earned on Islamic financing and related assets, investments, and placements.

The fee and commission income earned by the bank in 1QCY24 clocked in at Rs5.91 billion, marking a surge of 46 percent against Rs4.04 billion earned in the same period last year.

The foreign exchange income of the firm stood at Rs477.93 million in 1QCY24, as compared to a loss of Rs155.04 million in the same period last year. During 1QCY24, the bank paid Rs27.84 billion in taxes, up over 122 percent, as compared to Rs12.5 billion in 1QCY23.

Bestway Cement’s Q3 profitability down slightly to Rs3.54 billionBestway Cement Limited reported a marginal 1 percent year-on-year fall in its profitability for the third quarter of FY24, posting an after-tax profit of Rs3.54 billion, down from Rs3.57 billion in the same period last year.

The company also declared an interim cash dividend of Rs6 per share for the quarter.Despite the slight dip in profitability, the company's top line saw a significant increase, rising 15.9 percent year-on-year to Rs25.2 billion, up from Rs21.74 billion in the same period last year.

The cost of sales also increased by 8.7 percent year-on-year, but this was less than proportionate to the sales increase, leading to a 35.5 percent year-on-year improvement in gross profit, which stood at Rs7.91 billion in 3QFY24.

The resulted in an improvement in gross margins to 31.40 percent, up from 26.86 percent in the same period last year.Other income during the review period soared by 76.4 percent year-on-year to Rs113.53 million in 3QFY24, compared to Rs64.34 million in the same period last year. On the expense side, administrative expenses decreased by 33.2 percent year-on-year to Rs309.58 million, while other expenses increased to Rs286.71 million.

The company's finance cost skyrocketed by 98.4 percent year-on-year to Rs2.87 billion, primarily due to higher interest rates, compared to Rs1.44 billion in the same period last year.On the tax front, the company paid Rs1.95 billion, a significant increase of 57.6 percent year-on-year from the Rs1.24 billion paid in the corresponding period of last year.