92% decline in PTCL’s profit in 2024
The company saw a 13 percent increase in net sales to Rs 25.92 billion from Rs 22.94 billion.
Pakistan Telecommunication Company Limited faced a significant downturn with net profit falling to Rs 431.2 million, down 92.1 percent from Rs 5.4 billion in the first quarter of the current calendar year 2024.
However, the company saw a 13 percent increase in net sales, which rose to Rs 25.92 billion from Rs 22.94 billion.
The company attributed the revenue growth to Flash Fiber, Pakistan’s leading fiber-to-the-home service provider, which has experienced significant growth, achieving the highest net growth in the market since December 2023. The growth is attributed to aggressive expansion. Similarly, gross profit rose to Rs 6.72 billion, up 18.2 percent from Rs 5.69 billion, indicating better cost management and better sales revenue. Billion fell to Rs 3.19 billion which significantly affected the bottom line of the company.
Thus, profit before tax decreased by 93% to Rs 607.3 million, and earnings per share fell to Rs 0.08 from Rs 1.07. Reflecting various challenges and changes in the financial position Over the years, the company’s market value per share has steadily declined to a low of Rs 6.1 in 2022, resulting in reduced profitability, and competitiveness. The increase, and the broader economic factors affecting the telecom sector, are reflected in investor concerns.
In the year 2023, the share price improved and jumped to Rs 12.23 indicating better market sentiment or expectations of better future performance Debt ratio increased from 50.76% in 2017 to 69.72% in 2023 which is Decreasing liquidity reflects increasing reliance on debt financing for fund operations and capital expenditure Liquidity ratios, including current and quick ratios, have generally declined over the years indicating increased liquidity pressure. is.
The company reported the highest current ratio of 1.14 in 2017 and the lowest of 0.76 in 2021. Similarly, the current ratio was the highest at 1.09 in 2017 and the lowest at 0.71 in 2021 indicating that liquid assets were not enough recent. To meet the company’s immediate obligations over the years, the technology and communication sector in Pakistan experienced a huge decline of 238.47% in net profit in the period January-March 2024 compared to the same period in 2023.
The sector recorded a total loss of Rs 5.63 billion during January-March 2024, while a net profit of Rs 4.06 billion was recorded in January-March 2023. Airlink Communication Limited was the only company with a significant increase of 260.41% in net profit. The company’s earnings per share increased from Rs 0.27 in January-March 2023 to Rs 0.93 in January-March 2024. TRG Pakistan Limited and TPL Corporation Limited saw a poor financial position as their net losses increased by 77.25 percent and 56.85 percent respectively.