May 05, 2026 (MLN): Telecard Limited (PSX: TELE) reported a solid 24% increase in its consolidated net profit for the nine months ended March 31, 2026, recording Rs381.40m compared to a restated Rs307.21m in the corresponding period last year.

Reflecting this steady bottom-line growth, the company's basic and diluted earnings per share (EPS) improved to Rs0.71 from Rs0.63 in 9MFY25.

The profit expansion was achieved despite a double-digit top-line contraction, primarily due to exceptional direct cost controls and a positive turnaround in secondary income.

TELE’s net revenue posted a 12% year-on-year decrease, falling to Rs7.04bn from Rs7.96bn. However, the company successfully slashed its direct costs at an even faster pace of 16%, bringing them down to Rs5.16bn.

Because the reduction in direct production costs outpaced the revenue decline, the gross profit secured a 6% expansion, climbing to Rs1.87bn compared to Rs1.77bn in the prior year.

On the operational front, overheads grew moderately. Administrative and distribution costs rose by 9% to Rs1.16bn.

The company also booked expected credit losses amounting to Rs49.64m (compared to zero in the same period last year).

However, this was completely offset by a highly favorable turnaround in "other income / (expense)," which brought in Rs88.51m compared to a net expense of Rs21.61m last year. Propelled by the resilient gross margins and other income, the operating profit rose by 10% to Rs752.45m.

Below the operating line, the company faced increased pressure from debt servicing. Finance costs spiked by 30%, reaching Rs98.56m from Rs75.68m in the same period last year. After accounting for a 10% higher statutory levy of Rs123.20m, the profit before taxation registered a 6% increase, settling at Rs530.70m.

The ultimate boost to the bottom line came from a 22% reduction in its taxation expense, which dropped to Rs149.30m from a heavier Rs192.36m burden in 9MFY25. This significant tax relief allowed Telecard Limited to securely close the nine-month period with its final net profit up by 24%, standing at Rs381.40m.

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