Air Link Reports 22% Growth in 4QFY25
Air Link Communication (AIRLINK) reported a 22% YoY growth in consolidated earnings to Rs 4.79/share in 4QFY25. This takes FY25 earnings to Rs12.01/share, up 3% YoY.
This higher-than-expected result was mainly led by reversals in administrative and other expenses, as certain items previously recorded under this head were reclassified as cost of sales, as per our channel checks.Cement Profits Rise 60% in 4QFY25
The company posted net sales of Rs18.8bn in 4QFY25, down 49% YoY and 33% QoQ. This decline stemmed from supply chain disruptions amid regional conflicts, which adversely impacted sales volumes.
AIRLINK’s gross margin improved to 14% in 4QFY25 from 10.4% in 3QFY25. The sequential improvement in GP margins is due to the reallocation of product finance cost, which was earlier booked under cost of sales. According to the management, final year accounts witnessed these changes on the advice of auditors.
We await the release of detailed accounts to ascertain all the changes made and gain further clarity,” Topline said.
Other income for the quarter clocked in at Rs446mn, up 88% YoY and 4.8x QoQ.
Effective Tax Rate (ETR) during 4QFY25 stood at 17% (compared to 39% in 3QFY25), due to deferred tax adjustments. FY25 tax rate averaged at 23% (FY24: 17%).
The company also announced a cash dividend of Rs4.5/share in 4QFY25, bringing the full year payout to Rs7/share, equivalent to a 58% payout (vs. 51% in FY24).
We maintain our BUY stance on AIRLINK. The company is currently trading at an FY26/FY27F PE of 11.5/7.7x,” Topline said.
