Air Link Communication Limited (PSX: AIRLINK) is projected to report a 20% year-on-year (YoY) decline in earnings for FY25, with profit after-tax expected at Rs3.7 billion and earnings per share (EPS) of Rs9.3, according to Arif Habib Limited’s (AHL) latest earnings preview. This decline is primarily due to a drop in sales volumes.
Locally manufactured mobile devices fell to 28.3 million units in FY25, marking a 13.1% YoY decrease, driven by high tax rates, weak rural demand, and poor farm economics, particularly in the low-end segment. On a quarterly basis, Air Link’s earnings are forecast to contract by 46% YoY.
Net sales are expected to reach Rs27.5 billion, reflecting a 25% YoY decline and a 3% quarter-on-quarter (QoQ) dip. Despite the decline in sales, gross margins are projected to improve by 450 basis points to 10.6%, driven by operational cost efficiencies and better plant utilization.
Finance costs are expected to rise by 36% YoY to Rs1.35 billion, indicating greater reliance on short-term borrowings. AHL has also anticipated a dividend payout of Rs2 per share for the quarter, bringing the full-year FY25 dividend to Rs4.5 per share.
Air Link, which was incorporated as a private company in 2014 and became a public limited company in 2019, is involved in the import, export, distribution, and retail of communication and IT-related products, including smartphones, tablets, laptops, and accessories. Meezan Bank Limited has confirmed that Air Link remains compliant with the Shariah screening criteria of the KMI All Share Islamic Index.
As of today’s close, Air Link is trading at Rs140 per share.
