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Air Link Communication Limited incurred a 53.4% contraction year-on-year in its net revenue during the fiscal year ending on June 30, 2023. The company posted a net revenue of Rs21.5 billion in FY23 compared to Rs46.15 billion in FY22. The gross profit also plunged 52.04% to Rs2.28 billion in FY23 from Rs4.75 billion in FY22. Despite this decrease in revenue and gross profit, the company saw a substantial jump in gross profit margin to 10.61% in FY23 from 1.02% in FY22.

Similarly, the operating profit shrank by 59.89% to Rs1.34 billion in FY23 from Rs3.35 billion in FY22. The profit-before-and-after-tax reduced by 71.14% and 45.7%, respectively, in FY23. The pre-tax profit stood at Rs712.2 million in FY23 compared to Rs2.46 billion in FY22.

Likewise, the company reported a post-tax profit of Rs894.5 million in FY23 against Rs1.64 billion in FY22. Though the net profit decreased in FY23, the company’s net profit margin jumped to 4.16% from 0.35% in FY22. The earnings per share (EPS) dropped to Rs2.3 in FY23 from Rs4.3 in FY22.

Financials analysis

Air Link Communication Limited's sales have observed a fluctuating trend over the years. The sales kept increasing in 2020 and 2021, but declined in 2022 and plunged in 2023, reaching Rs21.5 billion against Rs43 billion in 2020. The EPS also kept declining from Rs4.88 in 2020 to Rs2.33 in 2023. In 2021, it stood at Rs4.59 and Rs4.3 in 2022.

Ratios analysis

In 2020, Air Link Communication posted an 11.09% gross margin, which was mainly on account of higher sales. However, in the subsequent year, the gross margin reduced to 10.14%, before witnessing a marginal recovery to 10.34 in 2022 and 10.61 in 2023. The net profit margin stood at 3.4% in 2020, but slipped to 3.18% in 2021. However, it moved back up in 2022 and 2023, reaching 4.16%. Throughout the years, the company’s EPS growth remained negative ranging between -5.94% to -45.77%. Similarly, price-earnings growth stood at -1.49 in 2022 and -0.19 in 2023.

Company profile

Air Link Communication was established on January 2, 2014, as a private limited company, and later on April 24, 2019, it got registered as a public limited company. The company deals in the import, export, distribution, identification, wholesale and retail of goods and services linked to communication and information technology. These include accessories for laptops, tablets, cell phones, and smartphones, as well as related products.

Credit: INP-WealthPk