Nishat Power posts 39% higher earnings

Reports a profit of Rs1.4b for first half of fiscal 2013, announces Rs2 per share interim dividend.

KARACHI:

The Nishat Group’s power subsidiary, Nishat Chunian Power, reported 39% growth in profits to Rs1.417 billion for the first six months of the fiscal year 2012-13, a substantial increase against Rs1.024 billion in the corresponding half of the previous fiscal year.

The power generation company also announced Rs2 per share as interim cash dividend, according to a copy of the results sent to the Karachi Stock Exchange.

In the second quarter of fiscal 2013, profits rose 91% to Rs0.828 billion compared to Rs0.445 billion in the corresponding quarter last year. BMA Capital analyst Zoya Ahmed says that better operational levels, increased demand from the National Transmission and Despatch Company (NTDC) and favourable indexation movements led to a considerable growth in profitability.

According to Elixir Securities, receivables from NTDC were standing at Rs8 billion, Rs2 billion lower than the September 2012 levels.

Sales grew 16% to Rs12.276 billion for the period against Rs10.565 billion in the corresponding previous quarter. The power company’s margins squeezed 3% to 22% for the semi-annual period.



Nishat Chunian Power managed to drastically chop off other expenses which dipped 74% to Rs1.747 billion from Rs7.314 billion in the corresponding half of last year. Austerity measures adopted by the company added considerable gains to the bottom-line.

Nishat Power’s stock has posted a strong return of 14% current year to date, outperforming the KSE by 10% likely in the expectation of a strong cash payout with the results announced yesterday. The stock rose Rs0.96 to close at Rs22.46 during yesterday’s session at the Karachi bourse.

Published in The Express Tribune, February 15^th, 2013.

Like Business on Facebook to stay informed and join in the conversation.

Correction: In an earlier version of this article, second quarter profits for Nishat Chunian Power were erroneously reported as Rs828 billion. The error has been fixed.