Earnings down by 22%, results below market expectations, says AKD Research. PHOTO: NISHAT GROUP
KARACHI: Nishat Mills Limited (NML), one of the largest integrated textile mills in the country, posted a net consolidated profit of Rs1.81 billion in the second quarter ended December 31, 2016, down 22% compared to Rs2.31 billion in the same period of the previous year, according to a company notice sent to the Pakistan Stock Exchange (PSX).
Earnings per share (EPS) declined to Rs4.26 compared to an EPS of Rs5.54 in the period under review.
Cumulatively, in the first six months (Jul-Dec) of 2016-17 the company posted a net consolidated profit of Rs3.78 billion, down 5.3% from Rs3.99 billion in the same period last year.
“The results were below market expectations,” AKD Research report said.
The decline in Gross Margin is possibly on account of 26% year on year jump in cotton prices, the report added.
NML share price closed at Rs171.95, down 4.4% from its last-day’s closing price, on a day when the KSE-100 index closed at 48,929, down 446 points or 0.9%.
The company has seen a 2% year on year growth in topline to Rs24.01 billion due to better performance from its value-added textile segment, despite continuous declining trend in textile exports (down 1.5% year on year in first half of 2016-17).
Published in The Express Tribune, February 21st, 2017.
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