Technology & Communication: WORLDCALL COMMUNICATIONS LIMITED - Nine Months Ended March 31 2004

The company was incorporated in the province of Punjab in December 1995 as a public limited company. WorldCall Communications Ltd is principally engaged in the operation and maintenance of a payphones network. Its payphones are installed at various shops/commercial outlets. The company also provides pre-paid calling card services.
During 9 months of the fiscal year 2003-04, the period under review, its installed payphone base increased by 4,776 from 29,159 to 33,935 payphones. By end April 2004, the number of payphones exceeded 34,320. The Directors project a very diversified and much expanded business.
In view of the imminent deregulation of the telecommunications sector, WorldCall Group intends to expand its telecommunication related business horizon to include Local Loop (LL) telephony - using wireless, Multiple Subscriber Access Node (MSAN) and Voice over Cable (VoC) solutions - and Long Distance and International (LDI) carrier sales.
Pakistan Telecommunications Authority (PTA) would issue respective licenses for these activities in the near future. The directors, made their point emphatically that given, the existing financial, technical and human resources of WorldCall Group, no hindrance is foreseen in qualifying for the LL and LDI licenses.
The company is listed on the Karachi and Lahore Stock Exchanges. The market value of the share on 18th August 2004, closed at Rs 13.20 per share carrying 32% premium over the par value.
During the last one year the share's price at the stock exchange sharply trended upward from Rs 11.45 to Rs 19.50 per share.
The company has robust financial backbone as evident from solvency, liquidity and profitability ratios. Its equity lease expanded by Rs 125.4 millions and total asset base enlarged by Rs 183.2 millions on 31st March 2004 from 30th June 2003.
Revenues for the combined 3 quarters of FY 2003-04 reached Rs 1.368 billion from Rs 1.222 billion in the corresponding period last year. Net profit after taxation amounted to Rs 138.52 millions as compared to Rs 115.42 millions in the same period last year.
The profitability profile is ready to be glossed further in the near future particularly in the post deregulation environment. The improved margins will further enrich the stakeholders.

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Performance Statistics                (Million Rupees)

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Balance Sheet                                  -As At-

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                                 March 31      June 30

                                     2004         2003

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Share Capital-Paid-up:           1,592.64     1,592.64

Reserves & Profit:                 539.53       414.17

Shareholders Equity:             2,132.17     2,006.81

L.T Debts:                         316.13       435.21

L.T Deposits:                      135.24       150.36

Deferred Liability

 For Staff Retirement Gratuity:     21.85        17.35

Deferred Taxation:                 222.59       185.00

Current Liabilities:               533.31       383.37

Tangible Fixed Assets:           1,222.63     1,108.29

Goodwill:                           36.83            -

L.T Deposits:                       48.12        41.87

L.T Investments:                 1,230.09     1,298.87

Investment Property:                13.69            -

L.T Advances to

 Subsidiary Company:                25.00        25.00

Deferred Cost:                      13.53        18.01

Current Assets:                    771.40       686.06

Total Assets:                    3,361.29     3,178.10

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Profit & Loss A/C For

 Nine Months Ended          March 31 2004         2003

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Sales:                           1,367.87     1,221.73

Franchise Receipts:                 56.11        74.28

Revenues:                        1,423.98     1,296.01

Gross Profit:                      283.28       269.38

Operating Profit:                  189.19       110.60

Other Income-Net:                   45.62        69.02

Financial (Charges):               (48.61)       52.73

Profit Before Taxation:            179.52       142.36

Profit After Taxation:             138.52       115.42

Earnings Per Share (Rs):             0.87         0.76

Share Price (Rs) on 18.08.2004:     13.20            -

Price/Earning Ratio:                15.17            -

Book Value of Share (Rs):           13.38        12.60

Debt/Equity Ratio:                  13:87        18:82

Current Ratio:                       1.45         1.79

Gross Profit Margin (%):            26.90        20.79

Net Profit Margin (%):               9.72         8.91

R.O.A (%):                           4.12         3.63

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