NCL earnings drop 2.67% YoY in Q12024

April 30, 2024 (MLN): Nishat Chunian Limited (PSX: NCL) recorded a decrease of 2.7% YoY in its profitability for the quarter ended March 31, 2024 (Q12024), clocking in its profit after tax at Rs374.19 billion [EPS: Rs1.56], compared to a profit of Rs384.45bn [EPS: Rs1.6] in the same period last year (SPLY).

Going by the results, the company's top line expanded by 39.3% YoY to Rs24.25bn as compared to Rs17.41bn in SPLY.

The cost of sales rose by 35.4% YoY but was lesser than proportionate to sales rise, which improved the gross profit by 75.2% YoY to Rs2.98bn in Q1 2024.

The gross margins improved to 12.29% as compared to 9.77% in SPLY.

During the period under review, other income went down by 70.5% YoY to stand at Rs252.07m in Q1 2024 as compared to Rs853.33m in SPLY.

On the expense side, the company's administrative expenses fell 12.3% YoY to Rs125.94m, selling and distribution expenses rose 65.5% YoY to Rs657.78m, and other operating expenses fell 65.5% YoY to Rs25.75m.

The company’s finance cost increased by 23.1% YoY and stood at Rs1.81bn as compared to Rs1.47bn in SPLY, mainly due to higher interest rates.

On the tax front, the company paid a higher tax worth Rs239.24m against the Rs127.04m paid in the corresponding period of last year, depicting a rise of 88.3% YoY.

Amount in thousand except for EPS

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