PTC | Pakistan Telecommunication Company Ltd
Earning Release Q1-Mar 2024
PTC announced earnings per share (EPS) of Rs. 0.08, compared to EPS of Rs. 1.07 in the same quarter last year. The company did not declare any dividends.
In this quarter PTC earned a profit after tax of Rs. 431.2 million, registering a decrease of 92.1% over last year.
To get a perspective on the decrease in profit and loss, note that:
↗ Revenue increased by 13.0% in this quarter, compared to the last year,
↗ Gross profit increased by 18.2%,
↘ Other income decreased by 62.1%,
↗ Financial charges increased by 180.9%,
↘ EBIT decreased by 42.3%,
↘ Profit before tax decreased by 93.0%.
The gross profit margin for the quarter was 26%, which was higher than 1.2% compared to the same quarter last year.
The tax rate for the quarter was 29%, which was lower by 8% compared to the same quarter last year. So this helped the bottom line somewhat, at least for appearance sake.
To provide historical context to the earnings, note that PTC, on a twelve-month trailing basis, has recorded a profit after tax of Rs. 4,349.4 million. This represents a decrease by 53.7% compared to the twelve-month trailing PAT of the last quarter.
This quarter was particularly impacted by a low level of other income compared to previous quarters and a significant increase in financial charges. Despite PTC demonstrating strong performance on the operational front, the substantial decline in PAT for the quarter was primarily due to a 62% decrease in other income and a staggering 181% increase in financial charges, overshadowing the company's operational achievements.
The decline in other income appears substantial, especially considering that in the first quarter of last year, PTC's other income exceeded both gross profit and operating profit. 'Exchange gain and loss' is a key item that would make other income fluctuate. In the year 2022 PTC booked Rs. 3.2 billion as exchange gain.
In this quarter, PTC's operating profit witnessed an increase of over 30% compared to the previous year. The gross profit margin for the quarter stood at 26%, representing a significant improvement of 1.2% from the same quarter last year. Revenue experienced a growth of 13.0%, accompanied by an 18.2% increase in gross profit.
Download: PTC first-quarter announcement.
