Pak Datacom : Transmission of First Quarter Financials (July to Sep 2023)

CORPORATE PROFILE

BOARD OF DIRECTORS
1.	Syed Zomma Mohiuddin	Chairman / Non-Executive Director
2.	Brig. Syed Zulfiqar Ali (R)	Chief Executive / Executive Director
3.	Ms. Rubina Safir	Independent Director / Female Director
4.	Engr. Perwaiz Khan	Non-Executive Director
5.	Syed Junaid Imam	Non-Executive Director
6.	Mr. Muhammad Izqar Khan	Non-Executive Director
7.	Mr. Shamim Ahmed Sherazi	Independent Director
8.	Mr. Muhammad Waheed	Non-Executive Director
AUDIT COMMITTEE
1.	Ms. Rubina Safir	Chairperson
2.	Mr. Shamim Ahmed Sherazi	Member
3.	Mr. Muhammad Waheed	Member
HUMAN RESOURCE & REMUNERATION COMMITTEE
1.	Mr. Shamim Ahmed Sherazi	Chairman
2.	Mr. Muhammad Izqar Khan	Member
3.	Ms. Rubina Safir	Member
4.	Syed Junaid Imam	Member
PROCUREMENT COMMITTEE
1.	Syed Zomma Mohiuddin	Chairman
2.	Mr. Muhammad Izqar Khan	Member
3.	Engr. Perwaiz Khan	Member
4.	Mr. Muhammad Waheed	Member
NOMINATION COMMITTEE
1.	Syed Zomma Mohiuddin	Chairman
2.	Syed Junaid Imam	Member
3.	Engr. Perwaiz Khan	Member
STRATEGY & PROJECT APPRAISAL COMMITTEE
1.	Syed Zomma Mohiuddin	Chairman
2.	Syed Junaid Imam	Member
3.	Engr. Perwaiz Khan	Member

CHIEF FINANCIAL OFFICER

Mr. Ahmed Rafiq (A)

COMPANY SECRETARY

Mr. Ali Saleem Rana

REGISTERED OFFICE

1st Floor, Telecom Foundation, TF Complex, TF Headquarters, 7-Mauve Area, G-9/4, Islamabad.

HEAD OFFICE

3rd Floor, Umar Plaza, Blue Area, Islamabad. Tel: [phone], Fax: [phone].

SHARES DEPARTMENT

CDC Shares Registrar Services Limited (CDCSRSL), CDC House, 99-B, Block B, S.M.C.H.S., Main Shahra-e-Faisal, Karachi - 74400. Tel: [phone].

AUDITORS

BDO Ebrahim & Co. Chartered Accountants, 3rd Floor, Saeed Plaza, 22-East Blue Area, Jinnah Avenue, Islamabad. Tel: [phone].

LEGAL ADVISOR

Ahmed Bashir & Associates, Advocates and Solicitors, 210-A, Sughra Tower, Street # 73, Sector F11/1, Islamabad.

1

DIRECTORS' REPORT

The Board of Directors of the Company take pleasure in presenting the un- audited condensed interim financial statements together with their report on the performance of the Company for the three months' period from July 01, 2023 to September 30, 2023.

The financial year 2022-23 was highly challenging as it saw exorbitantly high inflation which resultantly intensified Pakistan's challenging balance of payment issues and put enormous pressure on the value of Pak Rupee against the US Dollar. The data communication sector, being heavily subject to import of telecom equipment, was notably affected by deteriorating rupee-dollar parity and restrictions on issuance of Letter of Credits by commercial banks. Nevertheless, despite these challenges, telecom industry has a promising potential for growth due to the Country's demographics, as rising demand for high-speed data services and rapid pace of digitalization, specifically entails an ideal position for us to capitalize on these opportunities.

Revenue of the Company for the three months' period from July 01, 2023 to September 30, 2023 was Rs. 375.591 million compared to Rs. 442.474 million for the same period of previous year. In terms of percentage, this is a decline of 15 percent in revenue from that in the corresponding three months' period of the previous year. In comparison to the third quarter and fourth quarter of the previous year, however, where revenue of the Company was Rs. 235.543 million and Rs. 266.161 million respectively, it is an increase of 59.46 percent in revenue from that in the third quarter of the previous year, and an increase of 41.12 percent in revenue from that in the fourth quarter of the previous year.

In terms of profit, gross profit of the Company for the three months' period ended September 30, 2023 was Rs. 132.636 million compared to Rs. 65.392 million for the same period the previous year - up by approximately 103 percent. Resultantly, net profit of the Company for the three month's period ended September 30, 2023, was Rs. 66.517 million, resulting in earnings per share ('EPS') of Rs. 5.61, as compared to a profit of Rs. 64.959 million and EPS of Rs. 5.48 for the same period last year.

Significant expansion of high-speed data services during last few years has played a pivotal role in reshaping the focus of telecom sector thus becoming one of the core factors for shift in the way communication and interaction takes place. New ways of communication and interaction such as work from home, e-learning and digitization are more reliant on and are fueling the demand for data (high speed internet). Companies operating in the ICT sector are currently focused on increasing their offered speed and achieving sustainable growth. PDL is no different and is also focusing on providing high-speed internet, including high- speed internet over satellite to remote and under-served areas of Pakistan.

The Board takes this opportunity to thank the Company's shareholders, valued customers, government agencies, financial institutions, employees and all other stakeholders of the Company for their resolute cooperation and support without which it would have not been possible to achieve such outstanding results.

For and on behalf of the Board

Islamabad	Brig Syed Zulfiqar Ali (R)	Rubina Safir
October 13, 2023	Chief Executive	Director

2
3	13

3

4

CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION (UN-AUDITED)

AS AT SEPTEMBER 30, 2023	September 30,	June 30,
	2023	2023
Note	Un-audited	Audited
Rupees
NON-CURRENT ASSETS

Property and equipment	4
Intangible assets	5
Deferred taxation

203,846,408

7,796,586

94,947,788

306,590,782

208,752,215

3,847,269

94,211,555

306,811,039

CURRENT ASSETS

Inventories	6
Trade debts
Contract assets	7
Contract work in progress
Advances
Trade deposits and short term prepayments
Other receivables
Interest accrued
Short term investments	8
Cash and bank balances

SHARE CAPITAL AND RESERVES

18,598,723

782,316,910

301,725,220

142,052,415

10,257,112

58,049,475

9,398,907

2,024,607

114,176,299

377,731,087

1,816,330,755

2,122,921,537

-

748,662,850

242,502,038

142,827,275

44,295,406

57,552,745

9,413,395

3,827,119

144,777,493

352,530,697

1,746,389,018

2,053,200,057

Authorised share capital

Issued, subscribed and paid up capital

9

Reserves

General reserve

Unappropriated profits

NON-CURRENT LIABILITIES

Deferred employees' benefits

Lease liabilities

CURRENT LIABILITIES

Customers' deposits Contract liability

Trade and other payables10 Taxation - net

Current portion of lease liabilities Unclaimed dividend

Unpaid dividend

CONTINGENCIES AND COMMITMENTS

11

1,000,000,000

118,592,100

700,000,000

533,551,632

1,352,143,732

39,437,056

69,196,132

108,633,188

111,078,668

2,059,518

487,661,045

35,747,800

13,709,497

11,888,089

-

662,144,617

2,122,921,537

1,000,000,000

118,592,100

650,500,000

516,535,060

1,285,627,160

38,741,901

75,637,643

114,379,544

112,891,873

1,476,093

487,482,879

26,138,986

13,304,660

10,829,488

1,069,374

653,193,353

2,053,200,057

The annexed notes 1 - 21 form an integral part of these condensed interim financial statements.

Ahmed Rafiq	Brig Syed Zulfiqar Ali (R)	Rubina Safir
Chief Financial Officer (A)	Chief Executive	Director

5

CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS (UN-AUDITED)

FOR THE THREE MONTHS PERIOD ENDED SEPTEMBER 30, 2023

		Three months period ended
		September 30,	September 30,
		2023	2022
	Note	Rupees
Revenue - net	12	375,591,441	442,474,115
Cost of revenue	13	(242,955,720)	(377,082,312)
Gross profit
	132,635,721	65,391,803
Administrative expenses	14	(50,328,606)	(45,271,753)
Marketing expenses	15	(9,850,867)	(11,756,085)
Impairment (Loss)/reversal on financial assets		(3,541,311)	(7,871,359)
Finance income / (cost)	16	10,080,797	74,787,247
		78,995,734	75,279,852
Other income	17	14,672,818	13,365,038
Profit / (Loss) before taxation
	93,668,551	88,644,890
Taxation		(27,151,979)	(23,685,987)
Profit / (Loss) for the period
	66,516,572		64,958,903
Earnings per share - basic and diluted		5.61	5.48

The annexed notes 1 - 21 form an integral part of these condensed interim financial statements.

Ahmed Rafiq	Brig Syed Zulfiqar Ali (R)	Rubina Safir
Chief Financial Officer (A)	Chief Executive	Director

6

CONDENSED INTERIM STATEMENT OF COMPREHENSIVE

INCOME (UN-AUDITED)

FOR THE THREE MONTHS PERIOD ENDED SEPTEMBER 30, 2023

		Three months period ended
		September 30,		September 30,
		2023	2022
Note	Rupees
Profit / (Loss) for the period	66,516,572	64,958,903
Other comprehensive income not to be reclassified to profit
or loss in subsequent periods:		-
Re-measurement gain on defined benefit plan	-
Total comprehensive income / (loss) for the period
66,516,572		64,958,903

The annexed notes 1 - 21 form an integral part of these financial statements.

Ahmed Rafiq	Brig Syed Zulfiqar Ali (R)	Rubina Safir
Chief Financial Officer (A)	Chief Executive	Director

7

CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY (UN-AUDITED)

FOR THE THREE MONTHS PERIOD ENDED SEPTEMBER 30, 2023

Share Capital
Issued,		General		Unappropriated
subscribed and		Reserve		profit
paid-up
			Rupees

Total

Balance as at July 01, 2022

118,592,100

591,500,000

362,781,809

1,072,873,909

Total comprehensive income or (loss)

Profit for the period

Other comprehensive income

-	-	64,958,903	64,958,903
-	-	-	-
-	-	64,958,903	64,958,903

Transactions with owners of the company
Final dividend for the year ended June 30,
2023: Rs. 6 per share	-		-		(71,155,260)		(71,155,260)
Balance as at September 30, 2022
118,592,100		591,500,000		356,585,452		1,066,677,552
Balance as at June 30, 2023 (audited)	118,592,100		650,500,000		516,535,060		1,285,627,160
Balance as at July 1, 2023	118,592,100		650,500,000		516,535,060		1,285,627,160
Total comprehensive income or (loss)

Profit for the period

Other comprehensive income

-	-	66,516,572	66,516,572
-	-	-	-

Total comprehensive income for the period	-		-		66,516,572		66,516,572
Transfer to general reserve	-		49,500,000		(49,500,000)		-
Balance as at September 30, 2023
118,592,100		700,000,000		533,551,632		1,352,143,732

The annexed notes 1 - 21 form an integral part of these condensed interim financial statements.

Ahmed Rafiq	Brig Syed Zulfiqar Ali (R)	Rubina Safir
Chief Financial Officer (A)	Chief Executive	Director

8

CONDENSED INTERIM STATEMENT OF CASH FLOWS (UN-AUDITED)

FOR THE THREE MONTHS PERIOD ENDED SEPTEMBER 30, 2023

Three months period ended

September 30, September 30,

Note

CASH FLOWS FROM OPERATING ACTIVITIES Profit / (loss) for the period - before taxation Adjustments for non-cashitems:

Depreciation

Amortization

Property and equipment - write off

Loss / (gain) on disposal of property, plant and equipment Impairment reversal on financial assets

Finance cost

Unrealized exchange (gain) / loss Interest income

Provision for gratuity

Provision for earned leave encashment Provision for provident fund

Changes in working capital Decrease / (increase) in inventories Decrease / (increase) in trade debts Decrease / (increase) in contract assets

Decrease / (increase) in contract work in progress Decrease / (increase) in advances

Decrease / (increase) in trade deposits and short term prepayments Decrease / (increase) in other receivables

Increase / (decrease) in customers' deposits Increase / (decrease) in contract liability Increase / (decrease) in trade and other payables

Taxes paid

Leave encashment paid

Net cash generated from / (used in) operating activities

CASH FLOWS FROM INVESTING ACTIVITIES

20232022 Rupees

93,668,551 88,644,890

6,908,187 6,902,514

728,665116,735

• 338,178
• (313,000)
  3,541,311 7,871,359
  2,474,100 4,113,040

(9,307,306)		(78,900,286)
(11,247,480)		(9,886,407)
4,840,486		4,941,634
2,066,511		1,800,000
2,388,729		1,415,746
96,061,755		27,044,403
(18,598,723)		-
(33,009,834)		154,852,287
(57,681,693)		(162,702,079)
774,861		(112,019,621)
34,038,294		(4,951,559)
(435,136)		71,805,997
14,488		2,472,125
(2,559,645)		7,799,823
583,425		(1,844,667)
(8,385,219)		159,523,207
(85,259,181)		114,935,513
10,802,574		141,979,916
(18,279,398)		(7,120,579)
(1,371,356)		(3,636,023)
(8,848,180)		131,223,315

Purchase of property and equipment Proceeds from sale of property and equipment (Purchase) / sale of short term investments Purchase of intangibles

Interest and profit received

Net cash used in investing activities

CASH FLOWS FROM FINANCING ACTIVITIES

Payment of finance lease obligation

Dividend paid

Finance cost paid

Net cash used in financing activities

Net increase / (decrease) in cash and cash equivalents

Cash and cash equivalents at the beginning of the year

Effect of movements in exchange rates on cash and cash equivalents

Cash and cash equivalents at the end of the period

8

(2,002,380)

-

21,000,000

(4,677,982)

22,651,186

36,970,824

(8,384,917)

(10,773)

(219,099)

(8,614,789)

19,507,855

352,613,157

5,692,311

377,813,323

(3,566,146)

776,132

(11,803,810)

(225,094)

6,381,576

(8,437,341)

(7,416,099)

-

(1,677,087)

(9,093,186)

113,692,787

251,196,514

95,408,754

460,298,055

The annexed notes 1 - 21 form an integral part of these condensed interim financial statements

Ahmed Rafiq	Brig Syed Zulfiqar Ali (R)	Rubina Safir
Chief Financial Officer (A)	Chief Executive	Director