NCPL profit drops 62% amid lower revenue

October 28, 2025 (MLN): Nishat Chunian Power Limited (PSX: NCPL), a key player in Pakistan's independent power producer (IPP) sector, reported a profit after tax of Rs552.1 million for the quarter ended September 30, 2025, marking a decline of 62.33% from Rs1.47 billion in the corresponding period last year.

Earnings per share (EPS) decreased 62.41% to Rs1.50, compared to Rs3.99 in the same quarter of 2024.

The company's revenue from contracts with customers declined 34.21% year-on-year to Rs1.37bn, down from Rs2.08bn, showing reduced power generation or lower tariff realizations during the quarter.

Meanwhile, cost of sales increased significantly by 34.02% to Rs930.8m, leading to a gross profit of Rs435.7m, down sharply by 68.49% from Rs1.38bn last year. Gross margin compressed substantially to 31.9%, compared to 66.6% in the same period of 2024.

Administrative expenses rose 47.80% to Rs98.7m, while other expenses declined dramatically by 91.56% to Rs5.6m. Total expenses (administrative and other) decreased 21.85% to Rs104.3m.

Other income increased 21.64% to Rs290.9m, providing partial support to profitability.

Profit from operations declined 58.19% to Rs622.3m, compared to Rs1.49bn in the prior-year quarter.

Finance costs surged significantly by 71.65% to Rs1.6m, showing higher borrowing expenses.

Profit before levy and taxation fell 58.27% to Rs620.8m from Rs1.49bn last year. The company incurred a levy of Rs176,000 during the current quarter.

After accounting for an income tax expense of Rs68.4m, which increased 215.24% from Rs21.7m, profit after taxation stood at Rs552.1m, representing a 62.33% decline from Rs1.47bn in the corresponding quarter of 2024.

The net profit margin compressed to 40.4%, compared to 70.6% in the same quarter last year.

The quarterly performance shows challenges faced by Nishat Chunian Power amid significantly lower revenue generation, elevated cost of sales, and increased taxation, despite improvements in other income and reduced operating expenses.

The company continues to operate as part of Pakistan's energy infrastructure, contributing to the national grid's capacity requirements.

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