Advance Telecom (Private) Limited (‘ATPL’ or ‘the Company’) is a private limited company, incorporated on March 2, 2016 under the repealed Companies Ordinance, 1984 (now the Companies Act, 2017). The Company commenced commercial operations in November 2020. Its registered office is located at Amma Tower, M.A. Jinnah Road, Karachi, with additional warehouse facilities in Lahore & Hyderabad.

ATPL, incorporated in 2016, is a prominent mobile phone distributor in Pakistan with a strong nationwide presence. The Company has expanded its footprint through a joint venture with Enercom Technologies (Pvt.) Ltd., a local mobile phone manufacturer, where common directorship exists through Mr. Rizwan, who also holds a 50% equity stake in Enercom. Enercom specializes in producing high-quality smartphones and feature phones, with a daily production capacity exceeding 10,000 devices, and more than 200,000 feature phones and 100,000 smartphones per month. ATPL’s distribution journey began with Nokia. Currently, it holds official distribution agreements for Tecno, Itel, and Nokia.

The Company operates primarily as a distributor under agreements with its principals, dealing in mobile handsets, allied accessories, and after-sales services. Mobile devices are procured from various suppliers, most notably Enercom Technologies (Pvt.) Ltd, its major supplier.  ATPL sells its products through an extensive dealer network to individual retail customers as well as to corporate clients. The Company is an authorized distributor of Tecno, Itel, and Nokia. In line with its diversification strategy, the Company has expanded its portfolio in FY25 by entering the energy products segment, engaging in the import and trading of solar panels, batteries, and inverters. This new segment operates purely on a trading basis, with products imported and sold through the Company’s established distribution channels.

The ownership structure of ATPL reflects a closely held, family-driven governance model. The Company is jointly owned by Mr. Muhammad Rizwan and Mr. Muhammad Asif, each holding a 50% share. Their father, Mr. Abdul Majid, serves as the Chairman of the Board.

The ownership structure of the Company is seen as stable as the stake of the Company is held by the members of the family, and no significant changes are expected in the ownership structure of the Company in the foreseeable future.

Mr. Abdul Majid, the founding figure, provides strategic guidance based on decades of industry experience, laying the foundation for ATPL’s growth and partnerships. His son, Mr. Rizwan, manages daily operations and drives strategic initiatives, including diversification into the solar trading segment, reflecting strong combined business acumen.

The sponsoring family has demonstrated strong financial backing, contributing to the Company whenever required, particularly during critical periods to support operations and growth.

The Company’s governance framework is currently limited, with oversight vested in a two-member Board of Directors, consisting solely of the owners: Mr. Muhammad Rizwan and Mr. Muhammad Asif. Mr. Rizwan serves as the Chief Executive Officer (CEO), while Mr. Asif holds the role of President. However, the absence of non-executive and independent directors’ results in a concentrated decision-making structure and limits the Board’s ability to provide objective oversight. Strengthening the Board through the inclusion of independent members would significantly enhance governance quality, improve internal controls, and align the Company with best corporate governance practices.

The Company’s executive leadership is spearheaded by Mr. Muhammad Rizwan, Chief Executive Officer (CEO), and Mr. Muhammad Asif, President. Both individuals bring over 30 years of extensive and relevant industry experience, contributing significantly to the Company’s operational direction and market understanding. In addition to their roles at ATPL, they also maintain business interests in other related and successful ventures.

The effectiveness of the Board remains constrained due to its limited size and committee structure. ATPL currently operates with only one Board-level committee, the Human Resource & Remuneration Committee. The absence of other essential committees restricts the Board’s ability to exercise comprehensive oversight across key governance areas. Establishing additional independent committees would substantially enhance governance effectiveness, strengthen oversight, and align the Company with best practices in corporate governance.

The Company’s external audit is conducted by M/s Reanda Haroon Zakaria & Company, an audit firm categorized under ‘B’ rating in the SBP Panel of Auditors. The absence of an internal audit function represents a notable gap in the Company’s financial oversight framework.

The Company’s organizational structure is functionally segmented, with all department heads reporting directly to the Chief Executive Officer (CEO), ensuring centralized oversight and streamlined decision-making. The main departments of ATPL include HR & Administration, Sales, Finance, Business Control, Marketing, and Logistics. Each department has a well-defined hierarchical structure with multiple management cadres, enabling clear delegation of responsibilities, efficient workflow, and smooth day-to-day operations.

ATPL’s management team comprises experienced professionals with long-standing tenure, ensuring continuity and operational stability. Abdul Rehman serves as Company Secretary, Muhammad Anas heads the Finance department, Amir Hameed leads Sales as Country Head, and Muhammad Salman manages Logistics. All report directly to the CEO and have been with the Company since its incorporation, bringing over 30 years of cumulative industry experience. This continuity in leadership across key functions enhances strategic execution, departmental coordination, and day-to-day operational efficiency.

The Company’s management effectiveness is supported by its principal operational body, the Executive Committee, which oversees the execution of business strategies and monitors operational performance across departments.

ATPL has implemented an Oracle-based management information system (MIS), acquired in 2010, which generates detailed and frequent reports for senior management. The MIS is closely aligned with business operations, supporting effective and timely decision-making across departments.

The absence of an internal audit function represents a gap in the internal control framework, limiting continuous monitoring and independent assessment of operational and financial processes. Establishing an internal audit department in the future would further strengthen ATPL’s control environment and risk management capabilities.

The Pakistani mobile‑handset industry in 2025 is witnessing a shifting dynamic: local manufacturing and assembly have become dominant, with domestic plants meeting the bulk of demand while imports shrink in relative share. In the first nine months of 2025 alone, local facilities assembled around 22.78 million handsets, including both smartphones and 2G/feature phones. This surge reflects broader industry trends, demand is increasingly price‑sensitive, and consumers favor affordable locally‑assembled phones. According to recent data, roughly 94–95% of demand in 2025 was fulfilled through local assembly, reversing earlier years when imports played a larger role. However, the sector is also experiencing headwinds. Market wide handset sales in FY 2024–25 dropped by about 12% year on year, with overall volume falling from 34 million to just over 30 million units. Longer replacement cycles (from ~2.5 years to ~3.5 years), limited new product launches, and weakening consumer purchasing power especially in rural areas have contributed to the slowdown. At the same time, smartphone adoption continues to grow: many local assemblers report a rising share of smartphones relative to feature phones, in line with increasing internet penetration and demand for affordable smart devices. In this environment, distributors like ATPL operate in a competitive but evolving industry: success depends on aligning with local‑assembly supply chains, managing cost pressures, responding to shifting consumer demand (between 2G/feature phones and smartphones), and adapting to potentially slower replacement cycles.

ATPL holds an estimated 70% market share of Itel phones, 30% of Tecno phones & 50% of Nokia phones in Pakistan, reflecting a good presence in the mobile distribution sector. The Company is also an emerging player in the solar products market, though its footprint in this segment is still limited compared with established solar distributors.

The Company reported revenues of PKR 37 million in FY25, compared with PKR 51 million in FY24, reflecting a 27% year-on-year decline. This decrease was primarily driven by a combination of higher tax imposition on mobile imports, regulatory restrictions, and the absence of bulk sales, which had significantly boosted revenues in FY24, making it an abnormally strong year. While FY24 benefitted from one-off large transactions and favorable import conditions, FY25 reflects a more normalized revenue base, impacted by market-wide cost pressures and import limitations.

ATPL’s COGS declined from PKR 49 million in FY24 to PKR 36 million in FY25, broadly in line with the decrease in revenues (from PKR 51 million to PKR 37 million). Margins reflected this normalization, with Gross Profit Margin at 4.2% (4.6% in FY24), Operating Profit Margin at 2.8% (3.9%), and PBIT Margin at 2.6% (3.7%). Net Profit Margin remained stable at 0.7%, while the effective tax rate eased to 25.2% from 41.4%. Some moderation in returns was observed, with ROA at 3.1%, ROE at 13.5%, and asset turnover at 460.8%, mainly due to lower revenue levels and asset utilization. Cash conversion efficiency stood at 1.4%, rising to 3.7% when adjusted for working capital movements. Overall, FY25 reflects the impact of industry normalization and shifts in regulatory and market dynamics, suggesting room for continued focus on cost management and operational efficiency.

To enhance product diversity and strengthen long-term business resilience, ATPL ventured into the solar panels market in FY25. This strategic move reflects the Company’s commitment to sustainable and renewable energy solutions, supporting both revenue diversification and alignment with broader environmental trends in Pakistan.

ATPL’s working capital cycle saw some lengthening in FY25, with inventory days at 28 (vs. 12 in FY24) and receivable days at 26 (vs. 15). Payable days increased to 11 from 3 in FY24. As a result, net working capital days increased to 43 compared to 25 previously, while the current ratio remained comfortable at 2.9. The extended cycle highlights an opportunity for enhanced management of inventory and receivables to support stronger liquidity flow.

ATPL’s coverage indicators in FY25 show a moderate capacity to meet financial obligations. EBITDA-to-finance cost improved slightly to 1.6x from 1.5x in FY24, reflecting steady operating performance. Cash flow from operations (FCFO) declined by 71.6%, following an exceptional increase in the prior year, leading to FCFO-to-finance cost coverage of 0.8x (vs. 1.4x). When assessed against total short-term borrowings and liabilities, coverage stood at 0.5x, while liquid coverage remained adequate at 1.6x. Overall, the year’s cash flow trends highlight the importance of maintaining strong operational cash generation to support coverage metrics.

ATPL’s capital structure continues to show a high reliance on short-term borrowings, which formed 69.7% of total capital in FY25, slightly lower than 73.7% last year. Equity improved modestly to PKR 1.9 billion from PKR 1.8 billion, providing some additional support to the balance sheet. Off-balance sheet exposures increased during the year, reflecting higher operational commitments. While the Company remains dependent on short-term facilities, maintaining prudent liquidity management will be important going forward.