Corporate results: Nishat Mills’ earnings increase 1.3% to Rs7.58b

Lower tax expense, higher sales propelled company forward


Our Correspondent September 26, 2017
A textile mill. PHOTO: REUTES

KARACHI: Nishat Mills Limited has posted a consolidated net income of Rs7.58 billion in fiscal year 2016-17, up 1.3% compared with Rs7.48 billion in the same period of last year, according to a company notice sent to Pakistan Stock Exchange (PSX).

Earnings per share (EPS) jumped to Rs17.55 compared with Rs17.32 in previous year. Along with the result, the company declared a final cash dividend of Rs5 per share.

Earnings of Nishat Mills drop 28%

TAhe KSE-100 Index closed at 42,743, down 6 points or 0.02% on Monday. Nishat Mills share price closed at Rs146.65, down 1%.

Nishat Mills reported a consolidated net income of Rs1.31 billion (an EPS of Rs3.7), up 246% compared to Rs376 million (an EPS of Rs1.1) in the same quarter of last year.

A Topline Securities report said that higher earnings are mainly due to lower tax expense (36% compared to 79% last year) in the form of reversals booked on unlisted subsidiaries.

During the fourth quarter, the company’s consolidated revenues grew 18% year on year to Rs19.9 billion owing to higher revenues of unlisted subsidiaries.

Nishat Mills posts profit of Rs1.81 billion

Moreover, a 70% increase in Nishat Power (NPL) revenues was witnessed due to higher power dispatches (13% year on year) and furnace oil prices (45% year on year).

During fiscal year 2017, the company’s sales were up 10% but gross profits declined 1% indicating 1.8 percentage points margin attrition due to higher costs and low price growth due to competition.

Profit from operations was down 8% while lower taxation supported the bottom line, the report added.

Published in The Express Tribune, September 26th, 2017.

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