KARACHI, Oct 16 (Focus Pakistan) - The Supernet Technologies rights issue has triggered fresh scrutiny of the company's financial dealings with parent Telecard Ltd after it paid Rs450 million from the proceeds to its parent. Supernet now wants shareholders to convert another Rs372.2 million it owes Telecard into interest-bearing financing, its FY2026 annual report shows.
The IT and connectivity firm raised 914.77 million rupees by selling 91.48 million new shares after the June year-end, equal to 85% of its paid-up capital. Investors took up 98.16% of the offer.
Supernet paid 450 million rupees of that money to Telecard. The payment covers part of the deferred consideration for a 51% stake in Supernet Ltd that Supernet Technologies bought from Telecard in 2024. Another 372.2 million rupees remains unpaid. Management plans to put roughly 465 million rupees into working capital.
Telecard held 61.67% of Supernet Technologies at the end of June. Its chief executive, Syed Aamir Hussain, chairs Supernet’s board.
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At the coming annual general meeting, the board will ask shareholders to convert the unpaid 372.2 million rupees into an interest-bearing arrangement with Telecard, leaving tenure, markup and repayment to the directors. A separate resolution seeks authority to invest up to 500 million rupees in Telecard through equity, loans, running finance or guarantees, with any financing carrying markup of three-month KIBOR plus 2.40%. The company seeks the same limit for each of three subsidiaries.
THE MERGER EFFECT
On paper, the results soar. Consolidated revenue rose to 8.08 billion rupees from 4.89 billion, and profit after tax jumped to 467.2 million rupees from 78.4 million. The restated prior year, however, includes Supernet Ltd’s business only from January 2025, when the merger took effect.
The Supernet Technologies rights issue also adds another dimension to the group's post-merger financial restructuring.
Against Supernet Ltd’s full fiscal 2025, a comparison the company calls indicative only, revenue fell 12.8% from 9.27 billion rupees. Equipment and other non-service sales slumped 62% to 1.92 billion rupees. Service revenue climbed 45.6% to 6.16 billion rupees and now makes up 76% of the total, up from 46%.
That shift toward services lifted gross margin by 4.2 percentage points to 24%. Gross profit rose 5.8% to 1.94 billion rupees. Profit after tax still came in just below Supernet Ltd’s 473 million rupees a year earlier.
Earnings per share stood at 4.03 rupees. The board proposed a final dividend of 0.25 rupees a share, about 49.8 million rupees in total, and the new rights shares qualify for it.
Cash flow turned around. Operating activities brought in 411 million rupees, against an outflow of 162.1 million rupees at Supernet Ltd in fiscal 2025.
RISKS ON THE BOOKS
Auditors flagged receivables as a key audit matter. At the company level, gross trade debts stood at 2.19 billion rupees against a 327.4 million rupee loss allowance, and Supernet booked a 126.7 million rupee charge for expected credit losses during the year.
Satellite operator Intelsat is suing Supernet in the United States for about $10 million. Supernet has countersued in Karachi for more than $18 million and has made no provision.
The company also plans to move its registered office from Karachi to Islamabad’s Blue Area. It is still waiting for the Pakistan Telecommunication Authority to transfer its fixed local loop licences into its own name.
There is good news in the pipeline. In June, Supernet won a contract worth about 1 billion rupees to supply hardware and services for critical communications infrastructure, the largest in its history. It will carry out the work in fiscal 2027.
Supernet Technologies began life as Hallmark Company Ltd, an insurer whose licence the Securities and Exchange Commission of Pakistan revoked at the company’s own request in 2016.
