PTCL’s profits drop by 7.11% despite revenue increase

Pakistan Telecommunication Company Limited (PSX: PTC) has reported its financial performance for the first nine months of 2023.

The company’s profit dropped by 7.11 per cent compared to the same period last year, coming in at Rs7.64 billion with earnings of Rs1.50 per share. This is less than the Rs8.23 billion profit and Rs1.61 per share in the previous year.

On the positive side, the company’s revenue increased by 17.15 per cent compared to last year, reaching Rs71.61 billion, up from Rs61.13 billion.

Even though the cost of sales also increased by 17.16 per cent, the increase wasn’t as much as the rise in sales, resulting in a 17.1 per cent increase in gross profit, which reached Rs15.28 billion.

In terms of expenses, selling and marketing costs rose by 21.53 per cent year-on-year, while administrative and general expenses increased by 10.28 per cent during this period.

Additionally, the company’s impairment loss on trade debts and contract assets went up by 6.53 per cent.

Looking ahead, PTCL’s other income increased significantly, going up by 48.30 per cent. The company’s finance costs saw a substantial increase due to higher interest rates.

Regarding taxes, the company paid 11.33 per cent more in taxes compared to the previous year.