Air Link Communication Limited (PSX: AIRLINK) has reported a strong financial performance for the first quarter of FY2025, with profit for the period rising by 88.02% year-on-year to Rs1.583 billion. The company’s robust operational execution and effective cost management contributed to this substantial growth, compared to Rs842.165 million earned during the same quarter last year. The significant increase in profit was accompanied by an equally impressive rise in basic and diluted earnings per share (EPS), which climbed to Rs4.01 from Rs2.13, marking an 88.26% improvement.
The company’s top-line revenue grew by 10.66%, reaching Rs24.402 billion, reflecting continued demand for Air Link’s products and services in Pakistan’s expanding consumer electronics market. Its gross profit surged by 56.07% as the company benefited from better cost efficiency and stronger pricing strategies. Selling and distribution costs were favorably reduced by 24.87%, while administrative expenses recorded a modest increase of 5.71%. Other income also saw an upturn of 50.28%, rising to Rs315.763 million from Rs210.155 million, further supporting the company’s pre-tax profits. Despite facing higher administrative and financing costs, the firm managed to maintain a strong operational performance, with operating profit rising by 68.51% during the quarter.
Air Link’s finance cost increased by 42.08%, and income tax provision climbed by 67.62%, reflecting the growing scale of its operations. Nevertheless, the company successfully absorbed these expenses, reporting a net profit margin expansion from 3.82% to 6.49%. This improvement underscores Air Link’s ability to maintain profitability even amid rising input and financing costs. The company declared an interim cash dividend of Rs2.00 per share (20%), further rewarding shareholders for the strong quarterly performance.
As a leading player in Pakistan’s technology sector, Air Link Communication operates across smartphone manufacturing, distribution, and retail through its vertically integrated business model. The group comprises Air Link Communication Limited and its wholly-owned subsidiary, Select Technologies (Private) Limited. It maintains partnerships with global technology brands such as Samsung, Xiaomi, Tecno, itel, and Acer Gadgets Inc., and also operates as an Apple Authorized Reseller in Pakistan. The company’s state-of-the-art smartphone assembly facility in Lahore, established in 2021, has a production capacity of 12 million handsets per year.
Looking ahead, Air Link is expanding its operations beyond smartphones by initiating the manufacturing of Xiaomi smart LED televisions in FY2025. The company has also acquired eight acres of land in the Sundar Green Economic Zone (SEZ) to enhance production capacity and begin manufacturing white goods by FY2026. The SEZ offers benefits such as zero duty on imported machinery and a 10-year tax holiday, which are expected to further strengthen Air Link’s manufacturing base and long-term growth prospects.
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