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Pakistan Telecommunication Co (KAR:PTC) Gross Margin % : 15.86% (As of Dec. 2023)


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What is Pakistan Telecommunication Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Pakistan Telecommunication Co's Gross Profit for the three months ended in Dec. 2023 was ₨7,687 Mil. Pakistan Telecommunication Co's Revenue for the three months ended in Dec. 2023 was ₨48,482 Mil. Therefore, Pakistan Telecommunication Co's Gross Margin % for the quarter that ended in Dec. 2023 was 15.86%.

Warning Sign:

Pakistan Telecommunication Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -6.7%.


The historical rank and industry rank for Pakistan Telecommunication Co's Gross Margin % or its related term are showing as below:

KAR:PTC' s Gross Margin % Range Over the Past 10 Years
Min: 19.24   Med: 25.66   Max: 31.71
Current: 19.26


During the past 13 years, the highest Gross Margin % of Pakistan Telecommunication Co was 31.71%. The lowest was 19.24%. And the median was 25.66%.

KAR:PTC's Gross Margin % is ranked worse than
87.71% of 350 companies
in the Telecommunication Services industry
Industry Median: 49.145 vs KAR:PTC: 19.26

Pakistan Telecommunication Co had a gross margin of 15.86% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Pakistan Telecommunication Co was -6.70% per year.


Pakistan Telecommunication Co Gross Margin % Historical Data

The historical data trend for Pakistan Telecommunication Co's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Pakistan Telecommunication Co Gross Margin % Chart

Pakistan Telecommunication Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 26.16 25.58 25.09 20.29 19.24

Pakistan Telecommunication Co Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 18.58 19.81 21.23 20.22 15.86

Competitive Comparison of Pakistan Telecommunication Co's Gross Margin %

For the Telecom Services subindustry, Pakistan Telecommunication Co's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Pakistan Telecommunication Co's Gross Margin % Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Pakistan Telecommunication Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Pakistan Telecommunication Co's Gross Margin % falls into.



Pakistan Telecommunication Co Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Pakistan Telecommunication Co's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=36189.9 / 188074.785
=(Revenue - Cost of Goods Sold) / Revenue
=(188074.785 - 151884.838) / 188074.785
=19.24 %

Pakistan Telecommunication Co's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=7687.1 / 48482.289
=(Revenue - Cost of Goods Sold) / Revenue
=(48482.289 - 40795.158) / 48482.289
=15.86 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Pakistan Telecommunication Co  (KAR:PTC) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Pakistan Telecommunication Co had a gross margin of 15.86% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Pakistan Telecommunication Co Gross Margin % Related Terms

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Pakistan Telecommunication Co (KAR:PTC) Business Description

Traded in Other Exchanges
N/A
Address
Room No. 17, Plot No 55-C, Ground Floor (Margalla Side), Ufone Tower, Main Jinnah Avenue, Blue Area, Sector F-7/1, Islamabad, PAK
Pakistan Telecommunication Co Ltd is a telecom company. It is mainly engaged in providing telecommunication services such as wireline and wireless services, interconnects, data services, and equipment sales. The services provided by the company include high-speed internet, smart tv, mobile services, landline services, digital services such as managed Wi-Fi, smart radios, point-to-multipoint and cloud services in the realm of IaaS (Infrastructure as a Service), and hosting services. The company operates in three operating segments i.e. fixed-line communications (Wireline), wireless communications (Wireless), and banking.

Pakistan Telecommunication Co (KAR:PTC) Headlines