Karachi: Pakistan Telecommunication Company Ltd (PTCL) has reported a notable decline in its net profit margin for the year ending December 31, 2024, despite an increase in its overall revenue. According to the company's operating and financial highlights, the net profit margin fell to 4.48% in 2024 from 9.75% in 2023, while revenue climbed to 107,766 million rupees from 96,267 million rupees the previous year.

The telecommunications company, operating within the designated market category of telecommunications, showed an improvement in its operating profit margin, which rose to 11.37% from 8.23% over the same period. However, the decline in net profit margin was accompanied by a decrease in profit after tax, which dropped to 4,826 million rupees compared to 9,391 million rupees in 2023.

According to information available from the Pakistan Stock Exchange (PSX), PTCL's earnings per share fell to 0.95 rupees from 1.84 rupees, while the market value per share saw a significant rise to 27.27 rupees from 12.23 rupees. This increase in market value per share is reflected in the price-earnings ratio, which climbed to 28.82 times from 6.64 times the previous year.

The company's financial position shows a decrease in shareholders' equity, which fell to 115,108 million rupees from 117,368 million rupees. Current assets rose to 160,037 million rupees from 133,153 million rupees, while non-current liabilities increased to 124,625 million rupees from 103,138 million rupees. PTCL's working capital was reported at negative 57,917 million rupees, a further decline from negative 33,942 million rupees in 2023.

PTCL's leverage indicators revealed a shift in the gearing ratio to 52:48 from 48:52, with the debt ratio increasing to 74.85% from 69.72%. The company's liquidity ratios showed a decline, with the current ratio decreasing to 0.73 times from 0.80 times, and the quick ratio dropping to 0.70 times from 0.74 times.

Despite the financial challenges, PTCL maintained a 100% earnings retention rate for both years, with no dividends declared. The company's return on equity decreased to 4.15% from 8.33%, while the return on capital employed rose to 5.32% from 3.99%.

These financial results highlight PTCL's strategic focus on maintaining revenue growth while navigating the pressures on profitability in a competitive telecommunications market.