During the year under review the company made substantial expansion in the capital base. It has made massive infrastructure investment to launch new services and rapidly expand network. While these provided opportunities to raise revenue for years to come, it also increased expenses.
The increase in expenses included depreciation charge, costs relating to sites, provision of media charges, administrative expenses, investment in brand development and one time charges relating to raising of debt and equity. The company raised funds of 4.4 billion through a combination of Rs 2.4 billion debt and Rs 2 billion in equity.
The year under review proved massive success as its sales increased to Rs 2.42 billion by 46.5% gross profit to Rs 830.41 million by 99.3% and profit after taxation to Rs 244.34 million by 96.49% as compared to last year's. During the year under review, addition in the fixed assets amounted to Rs 996.97 million. The company has not been able to declare dividend because of heavy expansion. The last declaration of dividend was made in June 2001 @10%.
Telecard Limited was incorporated in Pakistan on October 29, 1992 as a public limited company and is listed on Pakistan's stock exchanges. It is the leading private sector telecom service provider and is licenced for all telecommunications and WLL (Wireless Local Loop) services in all 14 telecom regions of the country. It also owns and operates a countrywide network of wireline and wireless pay phones.
In January 2005, Telecard Ltd, launched WLL service under the brand name of GO CDMA. In this connectivity, quality is better than a normal landline and yet the cost is the same. GO CDMA offers schemes to suit every segment, be it at corporate level, or for the common man. Features like High Speed Internet SMS, Voice mail and caller ID are all part of the services offered, connecting the subscribers seamlessly. It has been emphasised that the architecture and functionality of GO CDMA's network is dynamic to keep pace with the evolution of technology in future.
The changing paradigm in the telecom sector would not only connect people but also improve the quality of life, develop intellectual capital, enhance productivity, create new businesses, build partnership and accelerate the advance of Pakistan into information stage.
Following the successful commencement of GO CDMA. Wireless Local Loop Network (WLL) it is set to launch Long Distance and International (LDI) calling services. It has been reported that Telecard has deployed a state of the art Next Generation Network (NGN). This defines Telecard's vision to become an integrated telecommunications solutions provider of choice for the corporate, consumer and inter carrier markets.
In addition to the traditional long distance voice telephony services the Telecard LDI infrastructure will be able to offer to specialised applications and services including Virtual Network Operations, Switch Less Resale, Toll Free and Premium Rate Services, closed user group applications, conferencing, secure networks. On-demand services, collect calling, follow-me services for international travellers and a range of other customisable products and services catering to virtual service providers, calling card marketing companies, domestic and international carriers, call centres, payphone companies, hotels, banks, airlines, logistics and distribution companies; etc.
Telecard is creating opportunities for setting up micro businesses by providing Public Call Office access to rural Pakistan as well as low income households allowing for alleviation of poverty.
Supernet Limited, subsidiary Telecard Ltd, is the largest private sector Data Network Operator in Pakistan.
It provides internet access, point-to-point and point-to-Multipoint communication services using and Radio and Satellite access and integration solution. On June 30, 2005, the authorised capital of the company increased to Rs 4 billion (2004: Rs 1.25 billion) paid-up capital increased to Rs 3 billion (2004: Rs 1 billion). Total assets of the company increased to Rs 11.51 billion on June 30, 2005 from Rs 3.26 billion on June 30, 2004.
The company posted net revenue at Rs 2.42 billion as against Rs 1.65 billion generated in the preceding year 2003-04 registering 46.5% growth.
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Performance Statistics (Million Rupees)
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30th June 2005 2004
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Share Capital-paid-up: 3,000.00 1,000.00
Reserves & Surplus: 689.18 444.84
Shareholders Equity: 3,689.18 1,444.84
L.T. Debts: 2,794.45 460.14
L.T. Deposits: 60.73 64.96
Deferred Liabilities: 27.28 20.96
Deferred Taxation: 278.67 103.00
Current Liabilities: 4,658.55 1,164.39
Fixed Assets: 4,085.91 1,875.84
Intangible Assets: 3,356.10 -
L.T. Investment in
Subsidiary Company: 340.54 340.54
L.T. Loans & Deposits: 64.02 32.85
Deferred Costs: 21.98 42.59
Current Assets: 3,640.31 966.47
Total Assets: 11,508.86 3,258.29
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Revenue, Profit Pay Out
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Revenue-Net: 2,416.30 1,649.19
Gross Profit: 830.41 416.76
Other Operating Income: 160.02 26.63
Operating Profit: 543.77 227.21
Finance (Costs): (111.67) (46.48)
(Depreciation): (236.03) (125.56)
Profit Before Taxation: 432.10 180.73
Profit After Taxation: 244.34 124.35
Earnings Per Share (Rs): 1.13 0.85
Dividend: - -
Share Price (Rs) on 29/12/05: 17.15 -
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Financial Ratios:
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Price/Earning Ratio: 15.18 -
Book Value Per Share: 1.39 14.44
Price/Book Value Ratio: 0.49 -
Debt/Equity Ratio: 43:57 25:75
Current Ratio: 0.78 0.80
Asset Turn Over Ratio: 0.21 0.51
Days Receivables: 14 21
Gross Profit Margin (%): 34.37 25.27
Net Profit Margin (%): 10.11 7.54
R.O.A (%): 2.12 3.82
R.O.C.E (%): 6.34 5.93
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COMPANY INFORMATION: Chairman: Sultan-ul-Arfeen; Chief Executive Officer: Fazal Hussain; Director: Shahid Firoz; Chief Financial Officer: Haroon Iqbal; Company Secretary: Habib A. Farooqi; Registered Office: 3rd Floor, World Trade Center, 75 East Blue Area, Fazlul Haq Road Islamabad; Web Address: Not Reported; Corporate Office: 7th Floor World Trade Center, 10, Khayaban-e-Roomi Clifton Karachi.
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