Nishat Mills’ earnings slide 19%

Posts profit of Rs324m in first quarter of ongoing fiscal year

KARACHI: Nishat Mills - the flagship company of Nishat Group - posted a profit after tax of Rs324 million in the first quarter (Jul-Sep) of fiscal year 2015-16 (FY15-16), down 19% from Rs400 million in the same quarter of the last fiscal year, according to a notice sent to the Karachi Stock Exchange.

Earnings per share (EPS) dropped to Rs0.92 from an EPS of Rs1.14 in the period under review.

The company also announced its full year results for fiscal year 2014-015 (FY15) ended on June 30, 2015.

The company posted losses of Rs3.91 billion in FY15, down 29% compared to Rs5.51 billion in FY14.

The decline is mainly attributable to a 6% year-on-year (YoY) decline in sales and a decrease of 2 percentage points YoY in gross margins. The company’s profits also took a hit due to an increase of 8% YoY in finance cost, a BMA Capital report said on Tuesday.

The result was accompanied a final cash dividend of Rs4.5 per share.

For 1QFY16, the decline in earnings was brought about by a significant decrease of 12% YoY in sales and 11% YoY decline in other income on account of lower dividend income realised from subsidiaries.

However, the gross margins in the 1QFY16 remained intact at 11%.

Established in 1951, the company’s production facilities comprise of spinning, weaving, processing, stitching and power generation. It is considered as one of the most modern vertically integrated textile company in Pakistan.

Published in The Express Tribune, October 28^th, 2015.

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