Corporate results: Nishat Mills posts Rs3.99b profit

Earnings down 8.4% during first half of ongoing fiscal year

KARACHI: Nishat Mills (NML) on Wednesday posted a consolidated profit of Rs3.99 billion in the first half of fiscal year 2015-16 (1HFY16), down 8.4% from Rs4.36 billion in the same period of last fiscal year, according to a company notice to the Pakistan Stock Exchange (PSX).

Earnings per share (EPS) dropped to Rs9.03 in the period under review from an EPS of Rs9.74 in the corresponding period last year. In the second quarter (Oct-Dec) of fiscal year 2015-16, the company posted a profit of Rs2.31 billion (EPS of Rs5.54) compared to Rs2.77 billion (EPS of Rs6.34) in the same quarter of last year.

The company’s total exports for the year 2015 were Rs39.9 billion (or $394 million).

PSX 100-Index closed at 30,786 after gaining 222 points or 0.73% on Wednesday. NML share price also jumped by 1.4% to close at Rs88.28.

The appreciation of Pak rupee against the dollar, an uptrend in international cotton prices and increase in fuel and energy cost are key risks associated with NML, Topline Securities reported on Wednesday.

Established in 1951, NML is the flagship company of Nishat Group. It is one of largest vertically integrated textile companies in the country. Its production facilities comprise of spinning, weaving, processing, stitching and power generation.

Published in The Express Tribune, February 25^th,  2016.

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