In the second quarter of 2024, Pakistan Telecommunication Company Limited (PTCL) experienced a significant drop in profitability. The company’s profit after tax decreased by 53.3% compared to the same period last year, falling to Rs705.82 million. This translates to an earnings per share (EPS) of Rs0.14, down from Rs1.51 billion and an EPS of Rs0.30 in the previous year.
Despite the decline in profitability, PTCL’s revenue saw an 11.7% increase year-on-year, reaching Rs26.78 billion. The cost of sales also rose by 6.5% over the same period. As a result, the company’s gross profit improved by 30.3% year-on-year, totaling Rs6.79 billion. This increase in gross profit led to better gross margins, which rose to 25.35% from 21.74% the year before. Additionally, PTCL’s other income grew by 28.5% year-on-year, amounting to Rs4.1 billion.
However, the company faced substantial challenges with its finance costs, which surged by 158.2% year-on-year to Rs5.7 billion. This spike was largely due to higher interest rates. Administrative and selling expenses also saw increases, rising by 4% and 3.5% year-on-year, respectively. On a positive note, PTCL paid significantly less in taxes this quarter, with tax expenses dropping by 56.8% year-on-year to Rs421.73 million, down from Rs976.43 million in the same period last year.
