KARACHI: Nishat Chunian Limited has posted a consolidated net profit of Rs1.21 billion in the second quarter ended December 2017, up 96% compared with Rs618 million in the same quarter of previous year, according to a company notice sent to the Pakistan Stock Exchange (PSX).
Earnings per share (EPS) jumped to Rs3.31 in the Oct-Dec 2017 quarter compared with Rs1.26 in the corresponding period of previous year. Resultantly, net profit in the first six months (Jul-Dec) of fiscal year 2017-18 touched Rs1.96 billion (EPS Rs4.61) compared with Rs1.52 billion (EPS Rs3.82) in the same period of previous year.
The KSE 100-share Index closed at 42,994, up 84 points or 0.20% on Tuesday. Nishat Chunian’s stock price closed at Rs49.74, up 0.77%.
The company recorded net sales of Rs8.47 billion during the second quarter of FY18, up 12% year-on-year and 1% quarter-on-quarter. This was due to higher sales of the spinning segment and an uptick in final product prices.
Gross margins improved by 212 basis points year-on-year to 10.1% during the second quarter compared with 7.96% mainly due to a jump in local cotton prices that resulted in inventory gains.
Other income went down 31% year-on-year to Rs460 million, which was attributable to low payout from subsidiary - Nishat Chunian Power.
Finance cost of the company rose 24% year-on-year to Rs330 million owing to increase in borrowing to meet working capital and capital expenditure requirements.
Nishat Chunian is one of the leading spinning mills in Pakistan that supplies yarn to denim weavers, knitters, towel manufacturers and for shirts, work-wear, apparel, etc.
Published in The Express Tribune, February 28th, 2018.
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