PTCL 1HFY12 results – a brief review – Alfalah Securities Limited

Karachi: PTCL announced its Half Year FY12 results on 22nd Feb, 2012 reporting profit after tax of PKR 2.86 billion (EPS: PKR 0.56) declining by 28.9% YoY.

According to Alfalah Securities Limited, the results were inline with Alfalah Securities Limited’s expectations of PKR 0.53 EPS. The revenues witnessed an increase of 5.92% to PKR 29.34 billion although the bottom line dropped due to lower gross margin of 26.1% in HYFY12 as compared to 27.25% last year and 45.8% decline in other income to PKR 1.72 billion. The subsidiary of PTCL – Ufone contributes a major portion in the consolidated profitability of the company where it is expected to post PKR 0.95 (PAT: PKR 4.85 billion) in HYFY12 which is yet to be revealed in the consolidated results. Alfalah Securities Limited recommends a BUY on PTCL with target price of PKR 16.34 where the stock is trading at a FY12 P/E of 6.73x calculated on the consolidated FY12E EPS of PKR 1.75.

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