Hum Network Limited (PSX: HUMNL) reported a 40.9% increase in net profit, reaching Rs677.47 million (Earnings Per Share: Rs0.60) for the quarter ending September 2024. This is up from Rs480.86 million (EPS: Rs0.42) in the same period last year (SPLY), fueled by revenue growth, cost reduction, and improved gross margins.
Financial Performance Summary
The company’s revenue rose by 8.2% to Rs1.99 billion, while a decline in cost of sales further enhanced profitability.
| Metric | Q1 FY25 / Q1 FY24 (% Change) |
|---|---|
| Revenue | Rs1,989,869 / Rs1,839,641 (+8.17%) |
| Gross Profit | Rs1,041,923 / Rs848,336 (+22.82%) |
| Net Profit | Rs677,467 / Rs480,858 (+40.89%) |
| EPS | 0.60 / 0.42 |
Margin and Expense Analysis
The gross margin rose to 52.4%, reflecting a decrease in cost of sales by 4.4%, while administrative and selling expenses showed mixed changes.
| Expense/Income Item | Q1 FY25 / Q1 FY24 (% Change) |
|---|---|
| Cost of Sales | Rs947,946 / Rs991,305 (-4.37%) |
| Gross Margin | 52.4% / 46.1% |
| Administrative Expenses | Rs259,507 / Rs228,421 (+13.61%) |
| Selling & Distribution Expenses | Rs119,137 / Rs131,802 (-9.61%) |
Additional Income and Finance Cost
Other income increased by 104.3%, while finance costs decreased significantly by 74.9%.
| Other Items | Q1 FY25 / Q1 FY24 (% Change) |
|---|---|
| Other Income | Rs109,808 / Rs53,745 (+104.31%) |
| Finance Cost | Rs1,789 / Rs7,118 (-74.87%) |
Taxation
Tax expenses rose by 74.1%, leading to an effective tax rate of 12.2%.
| Taxation | Q1 FY25 / Q1 FY24 (% Change) |
|---|---|
| Taxation | Rs93,830 / Rs53,882 (+74.14%) |
| Effective Tax Rate | 12.2% / 10.1% |
Hum Network’s strong quarterly performance reflects effective cost management and revenue growth, with improved profitability aided by higher gross margins and lower finance costs.
