Islamabad: According to the audited financial results for the fiscal year ended June 30, 2024, Pak Datacom Limited has experienced significant shifts in its financial performance. The company, a key player on the Pakistan Stock Exchange (PSX), reported a revenue increase to Rs. 1.69 billion, up from Rs. 1.36 billion in the previous year. Despite higher revenues, net profits fell sharply to Rs. 192.22 million from Rs. 289.86 million.
Pak Datacom's cost of services surged to Rs. 1.28 billion, an increase from Rs. 1.07 billion last year, which contributed to a decreased gross profit margin. Additionally, the company saw a notable reduction in operating profit, which plummeted from Rs. 284.01 million in 2023 to Rs. 146.58 million in 2024, largely due to a shift from finance income to finance costs. Last year, finance income bolstered profits by Rs. 242.39 million, but this year, the company reported a finance cost of Rs. 33.04 million.
Administrative expenses also rose to Rs. 225.81 million from Rs. 178.63 million, further impacting the bottom line. According to information available from the Pakistan Stock Exchange (PSX), marketing expenses and impairment losses remained relatively stable year over year.
Despite these challenges, Pak Datacom declared a final cash dividend of Rs. 3.50 per share, amounting to a 35% dividend yield, signaling a strong return to shareholders. No dividends were distributed prior during the fiscal year. The Board of Directors also confirmed that no new shares would be issued this year either as bonus or rights shares.
The Annual General Meeting is scheduled for October 21, 2024, in Islamabad, with the share transfer books to close from October 14 to October 21, 2024, to facilitate the dividend payment.
Earnings per share also decreased to Rs. 16.21 from Rs. 24.44 the previous year, reflecting the reduced profitability but stable payout to shareholders. This adjustment in dividends and the maintenance of shareholder returns amidst financial adjustments reflects Pak Datacom’s commitment to its investors during fluctuating economic periods.