Earnings of Nishat Mills drop 28%

Company posts Rs2.13 billion profit for third quarter

KARACHI: Nishat Mills Limited posted a consolidated profit of Rs2.13 billion in the third quarter of current financial year, according to a company notice sent to the Pakistan Stock Exchange (PSX).

The result showed a decrease of 28% in Jan-Mar FY17 as profit stood at Rs2.97 billion in the same quarter of previous year. Earnings per share (EPS) dipped to Rs4.99 from Rs7.22.

In nine months (Jul-Mar), earnings of the company were recorded at Rs5.91 billion, down from Rs6.96 billion in the same period of previous year.



Meanwhile, Nishat Mills’ share price at the stock exchange closed at Rs163.26 on Monday, down 2%. However, the broader KSE 100-share Index gained 403 points to end the day at 50,111.

According to a report of Topline Securities, a 111% year-on-year increase in average furnace oil prices along with 16% higher average cotton prices resulted in third-quarter margins contracting by three percentage points to 17% compared to last year.

The report added that the distribution cost went up 25% year-on-year to Rs1.26 billion due to higher freight and fuel charges.

Published in The Express Tribune, April 25^th, 2017.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.