AIRLINK has proposed a 5:1 stock split, increasing the total number of shares to 1.98 billion, subject to necessary regulatory approvals.
In its board meeting on Friday, the company announced that, upon shareholder and regulatory approval, shareholders would be entitled to receive five shares of PKR 2 each for every one share of PKR 10 they currently hold.
The Extraordinary General Meeting (EOGM) is scheduled to approve this proposal is scheduled for Thursday, March 27, 2025.
According to a report by Topline Securities, the benefits of the stock split include improved market accessibility, broader market reach, comparability with industry peers, signaling positive information to investors, and enhanced liquidity.
Air Link Communication Limited posted a net profit of PKR 2.3 billion for 1HFY25, compared to PKR 2.1 billion in the same period last year. On a quarterly basis, the company recorded a profit after tax of PKR 1.5 billion (EPS: PKR 3.7) in the second quarter of the current fiscal year, reflecting an 18% increase year-on-year.
The company also announced a cash dividend of PKR 2.5 per share for the first half of FY25.
Net sales for 1HFY25 declined by 5% to PKR 57.3 billion. On a quarterly basis, the topline for 2QFY25 contracted by 1% to PKR 35.3 billion.
However, sequentially, revenue surged by 60% quarter-over-quarter, primarily due to a 62% increase in mobile phone sales. This sharp growth is attributed to improved consumer sentiment, increased retail activity, and lower interest rates, which have enhanced affordability.
During the second quarter, the company reported gross profit margins of 9.2%, up from 7.7% in the same period last year, driven by better capacity utilization at Select technology plants.
Other income rose to PKR 133 million in 2QFY25, compared to PKR 37 million in the same period last year (SPLY), due to higher cash and cash equivalents. However, finance costs surged by 60% year-on-year to PKR 1.0 billion, reflecting higher short-term borrowings.
