Air Link Communication Limited (AIRLINK) has reported its highest-ever profit after tax (PAT) for the fiscal year 2025, reaching Rs. 4,748 million, up 3% from Rs. 4,625 million in FY24.
The company’s earnings per share (EPS) for FY25 stood at Rs. 12.01, compared to Rs. 11.70 in the previous year.
The company also announced its highest-ever final dividend of Rs. 4.5 per share for the fourth quarter of FY25, bringing the total payout for the year to Rs. 7 per share, up from Rs. 6 per share in FY24.
Net sales for FY25 were reported at Rs. 104,379 million, reflecting a 20% decline from Rs. 129,742 million in FY24. The drop was attributed to a decrease in locally manufactured device sales, which stood at 28.3 million units in FY25, down 13.1% year-on-year, as well as subdued demand and higher taxes making mobile phones less affordable, according to Arif Habib Ltd.
Despite the decline in sales, gross profit for FY25 was Rs. 11,015 million, up from Rs. 9,806 million in FY24. Gross margins improved to 10.6% from 7.6% last year, and in the fourth quarter, margins rose to 14.1% from 6.1% in the same period last year. The improvement was supported by better cost management and the incorporation of product-related finance costs into product pricing.
Administrative and distribution expenses for FY25 were Rs. 1,102 million, compared to Rs. 993 million in FY24. Finance costs increased to Rs. 3,944 million from Rs. 2,974 million last year, mainly due to higher short-term borrowings to support increased inventory, which rose to Rs. 18.9 billion in 4QFY25 from Rs. 9.3 billion in the preceding quarter.
The company recorded an effective tax rate of 23.5% in FY25, up from 17.4% in FY24. Net margins for the year improved to 4.5% from 3.6% last year.
Arif Habib Limited has maintained a ‘Buy’ rating on Air Link, with a target price of Rs. 269 per share. At current levels, the stock is trading at a FY26 P/E of 6.0x.