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PTCL's after-tax profit rises by Rs 4.07 billion

KARACHI (April 30 2004): The profit after tax of Pakistan Telecommunication Company Ltd (PTCL) registered an increase of Rs 4.07 billion in the nine months because of increase in traffic and installation of new lines.

PTCL on Thursday announced financial results for the nine months ended on March 31, and its net income grew by 26 percent to Rs 19.526 billion as compared with Rs 15.456 billion of the same period last year.

The earning per share improve to 3.83 rupees per share, as against 3.03 rupees per share.

The earnings in the third quarter improved to Rs 6.249 billion as against Rs 5.553 billion of the same period last year, beating the expectations of some of the analysts.

A leading analyst said that the growth in profit indicate that the company has shown top line growth, meaning the revenue has increased because of fundamental changes.

The profit rose despite cut in installation and monthly charges. The cut in cost helped improved the traffic and the company registered a volumetric growth.

Moreover, the company registered a growth in international incoming traffic, which boosted revenues. The company's depreciation expenses have been lowered as expansions becoming cheaper.

Financial charges declined in nine months ended on March 31, 2004 as the company might have adopted policy in restructuring its loan from expensive debt to cheaper borrowing.

The share price of the company remained unchanged at 43.35 rupees at the close of the Karachi Stock Exchange on Thursday.

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