Hifsa Raja

Air Link Communication Limited’s sales revenue decreased 64.5% to Rs3.96 billion in the third quarter (January-March) of fiscal year 2022-23 (3QFY23) from Rs11.1 billion over the corresponding period of the previous fiscal. Similarly, the company’s gross profit decreased by 65.9% to Rs418 million in 3QFY23 from Rs1.23 billion in 3QFY22. The profit-before-taxation also decreased 82.7% to Rs113 million in 3QFY23 from Rs656 million in 3QFY22.

The profit-after-taxation dipped 74.73% to Rs102 million in 3QFY23 from Rs405 million in 3QFY22. Overall, the financial summary of Air Link Communication Limited for the third quarter of this fiscal shows a downward trend compared to the same period of the previous fiscal year. A decrease in sales and gross profit led to a significant drop in profit before and after tax.

Important recent developments

The company has established a subsidiary – Select Technologies (Pvt) Limited – for smartphone assembling. The company has also invested Rs5 billion in purchasing plant and machinery for the purpose. It has employed an effective system of internal controls to help safeguard its assets and secure the accuracy and reliability of the records to carry out the business in an orderly manner. The company obtained certification in health safety and environment from French company Bureau Veritas. The safety policies in warehouses across Pakistan are implemented with the company’s vision of hazard-free environment both for employees and nature.

The company was listed on the Pakistan Stock Exchange with effect from September 22, 2021. In the Initial Public Offering (IPO), the company offered a total of 90 million shares, of which 60 million were new shares, at a price of Rs71.5 per share. The board of directors has also approved a remuneration policy for directors and members of senior management. According to the policy, the company will not pay any remuneration to non-executive and independent directors. However, the board of directors will be reimbursed all the expenses for attending the board meetings. Air Link Communication imports a variety of telecommunications tools and gadgets, including smartphones, from foreign markets. The imports of the company have, however, been impacted by restrictions imposed on import of luxury goods.

About the company

Air Link Communication was incorporated on January 2, 2014 as a private limited company under the now repealed Companies Ordinance, 1984, and was converted into a public limited company on April 24, 2019. The company deals in wholesale, retail of communication and IT-related products and services, including cellular mobile/smartphones, tablets, laptops accessories and allied products.

Credit: Independent News Pakistan-WealthPk