KARACHI, Feb 27: Pakistan Telecommunication Company Limited (PTCL) has reported 16.5 per cent growth in after-tax profit for the six months ended December 31, 2002 to Rs9.90 billion, from Rs8.50 billion in the corresponding period of the previous year.
The results for the half year 2002-03 were announced on Thursday, following the board meeting presided by the PTCL chairman, Mr.Akhtar Ahmad Bajwa.
Federal Minister for Information Technology and Telecommunications, Mr. Awais Ahmad Khan Leghari was also said to have attended the meeting on special invitation.
The Board did not declare an interim dividend and none was expected by the market. The share in PTCL, nonetheless, slipped by 20 paisa to Rs20.20 on Thursday, from the previous close of Rs20.40, with trading noted in 16.1 million shares at the Karachi Stock Exchange.
Commenting on the results, Mohammad Sohail, head of research at InvestCap Securities said that line expansion coupled with rising local call revenues, on the back of tariff rationalization had helped the company to post revenue growth of Rs1.3 billion during the first half of the year. “Other major factors that spurred 16.5 per cent growth in profitability,” Sohail says, “were improving debt-to-equity ratio with declining interest rates that resulted in reduction in interest expenses by over 50 per cent to Rs535.1 million for the six months under review, from Rs1.18 billion in the same period of the previous year.”
A press release issued by PTCL alongside the results stated that profit before taxation was Rs15.53 billion, which was 14.5 per cent higher compared to the same period of 2002. Net profit margin had improved during the year under review to 30.1 per cent, from 26.9 per cent in the similar six month the year ago. As a result of increase in profitability, earning per share increased to Rs1.94 from Rs1.67 of the first half of financial year 2001-02 and if annualised the figure would work out at Rs3.88, up from Rs3.34 per share.
Total revenue for the six months under review stood at Rs32.92 billion, reflecting increase of 4.1 per cent from Rs31.62 billion in the first half of 2002. The company noted that out of the total revenue of Rs32.92 billion, domestic revenue amounted to Rs24 billion, up by 7.7 per cent from Rs22.30 billion, which was the major reason for overall increase in revenue. International revenue stood at Rs8.90 billion.
“Turnover from International operations was affected due to rupee appreciation against foreign currencies whereas the international revenue in dollar terms had improved slightly by 1.7 per cent,” PTCL noted.
Operating expenses remained at Rs17.52 billion, as compared to Rs17.56 billion in the same period of 2002, in spite of the expansion in network and introduction of new value-added services, the company said, adding that the nominal decrease of 9.2 per cent in operating expenses was mainly due to reduction in foreign operator’s costs.
The company said that the cash flow had remained strong as EBITDA margin stood at Rs22.8bn (69.2pc) as compared with Rs20.6bn (65.7pc) of first half of financial year 2001-02. “The financial leverage of the company further strengthened, as long-term debt-equity ratio stood at 24pc as compared with 28 per cent as on June 30, 2002,” the company said.