During a short span of 13 years, this company in technology and communication sector has emerged as sustainable, profitable corporate entity. Its share is trading at a very high premium and revenue has swelled to Rs 418 million which is the record highest in its career.
Net profit after taxation at Rs 75.23 million shows 273% increase over the amount of Rs 20.17 million posted in the preceding year. Total assets reached Rs 530 million from Rs 366 million book value of the share Rs 35.73 million which is more than three times of the par value.
The financial backbone of the company is robust as can be seen from the liquidity and solvency ratios recorded in the performance statistics appended with this write up. The company is taking appropriate measures to address the issue of its Bangladesh operation's continued decline.
Pak Datacom Limited (PDL), a subsidiary of Telecom Foundation, was incorporated in Pakistan on July 13, 1992 as a private limited company and was converted into a public limited company on June 26, 1994. The company started its commercial activities on July 1, 1994.
Pak Datacom Limited is listed on all stock exchanges of Pakistan. Its registered office is located at 190, Industrial Area, I-9/2 Islamabad. In the company's pattern of shareholding dated June 30, 2005 it is indicated that 55.08 percent of the company's total 7.128 million paid-up shares was owned by its holding company. Its 2,151 individual shareholders from the general public held 31.19 percent of the company's stocks. Aqeel Karim Dedhi owned 11.71 percent of the company's stocks. State Life Insurance Corporation of Pakistan owned 7.72 percent and NBP Trustee Department owned 3.71 percent of the company's stock.
During the last one year the market value of PDL shares shot up fast from Rs 19.10 per share to Rs 87.20 per share. At present the PDL share's price at Rs 79.50 is the highest in the technology and communication sector.
One of the main reasons for the substantial increase in the price of the share is that PDL has excellent track record of regular profit distribution.
During the last six years it has never skipped dividend. Last year the dividend payout was 20% and for the year under review (FY 2004-05) the Board of Directors enhanced cash dividend to 25%.
The objective of the company is to set up, operate and maintain a network of data communication and to serve the needs of the subscribers against approved tariff charges. The company is also engaged in establishing operating data communication network in Bangladesh.
PDL claims that it is leading data network provider through VSAT, Optical Fibre (DXX) and Frame Relay in Pakistan and other countries. It is pioneer in high speed VSAT and Fibre Optic Technology in Pakistan. The company, keeping in view the market requirement, has migrated towards provisioning of high speed connectivity (192 kps to 45 mbps).
During the year under review, the company generated revenue in the sum of Rs 417.45 million. The revenue amount is the record highest since inception and 92.2% improvement over the preceding year's Rs 217.10 million.
The Chief Executive of the company Syed Mahmood Ahmed emphasised that by virtue of its excellent maintenance support to its customers PDL increased its customer base. For meeting the competitive business environment in Pakistan, the management is striving to explore other opportunities in the telecom sector. For domestic operations, expansion and upgradation of DXX network has been completed and has a network presence in 26 major cities of Pakistan.
During the year under review the financial health of the company remained robust as evidenced from the solvency, liquidity and profitability ratios which can be seen at a glance from the performance statistics.
The company recorded EPS at Rs 10.55 which is much higher than last year's Rs 2.83 per share.
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Performance Statistics (Million Rupees)
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30th June 2005 2004
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Share Capital-Paid-up: 71.28 71.28
Reserves: 183.42 122.45
Shareholders Equity: 254.70 193.73
Deferred Liabilities: 38.26 30.52
L.T. Customers' Deposits: 56.41 32.19
Current Liabilities: 180.54 109.87
Fixed Assets: 210.31 168.80
L.T. Deposits: 0.16 0.16
Current Assets: 319.44 197.35
Total Assets: 529.91 366.31
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Revenue, Profit & Pay Out
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Revenue: 417.45 217.10
Operating Profit: 109.97 28.34
Other Income: 9.01 0.90
(Depreciation): 24.35 18.87
Profit Before Taxation: 118.50 28.89
Profit After Taxation: 75.23 20.17
Earnings Per Share (Rs): 10.55 2.83
Dividend (%): 25.00 20.00
Share Price (Rs) on 18/10/05: 79.50 -
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Financial Ratios
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Price/Earning Ratio: 7.53 -
Book Value Per Share: 35.73 27.18
Price/Book Value Ratio: 2.22 -
Debt/Equity Ratio: 0:100 0:100
Current Ratio: 1.77 1.79
Asset Turn Over Ratio: 0.79 0.59
Operating Profit Margin (%): 26.34 13.05
Net Profit Margin (%): 18.02 9.29
R.O.A (%): 14.20 15.50
R.O.C.E (%): 21.53 7.86
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