Nishat Power announced a profit of Rs542 million or earnings per share of Rs1.53. PHOTO: File
KARACHI: Showing a modest growth of 6%, Nishat Power in the first three months of fiscal year 2013-14 announced a profit of Rs542 million or earnings per share of Rs1.53 compared to profit of Rs509 million or EPS of Rs1.44 in the same period last year.
However, on a quarter-on-quarter basis, earnings dropped 20% compared to the fourth quarter (April-June) of fiscal year 2012-13, when they stood at Rs679 million with EPS of Rs1.92.
Along with the results, the company announced a cash dividend of Re1 per share.
Revenues in the July-September quarter increased 2% from the previous quarter to Rs6.58 billion, primarily because of improved power generation during the period.
Despite the growth in revenues, gross profit fell 22% quarter-on-quarter to Rs924 million. Global Research said in a report that it expected a decrease in penal interest income due to reduction in receivables from Wapda, which could be the primary reason behind the decline in gross profit.
Finance cost of the company stood at Rs368 million, down 30% compared to Rs525 million in the previous quarter.
This decline was because of the reduction in short-term borrowings, which decreased almost 56% after the company received Rs7 billion as part of government efforts to clear the circular debt.
Nishat Power realised one-time tax adjustment of Rs44 million in the April-June quarter, inflating its earnings for the period. An absence of this adjustment in the first quarter of the current financial year contributed to the decline in quarterly earnings.
Published in The Express Tribune, October 29th, 2013.
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