NCL’s losses down to Rs385m in 1HFY24

February 28, 2024 (MLN): Nishat Chunian Limited (PSX: NCL) incurred a loss after tax of Rs385.11 million [LPS: Rs1.6] compared to a loss of Rs1.59 billion [LPS: Rs7.12] in the same period last year (SPLY), depicting an improvement of 75.8% YoY.

Going by the results, the company's top line rose by 35.02% YoY to Rs44.45bn as compared to Rs32.92bn in SPLY.

The cost of sales also rose 27.74% YoY but was lesser than proportionate to sales increase, which improved the gross profit by 124.51% YoY to Rs5.56bn in 1HFY24.

The gross margins improved significantly to 12.51% as compared to 7.52% in SPLY.

During the period under review, other income shrank by 41.24% YoY to stand at Rs158.09m in 1HFY24 as compared to Rs269.06m in SPLY.

On the expense side, the company observed an increase in distribution cost by 29.33% YoY while reducing its other expenses by 86.89% YoY to clock in at Rs1.09bn and Rs62.44m respectively during the review period.

The company’s finance cost inflated by 71.44% YoY and stood at Rs4.13bn as compared to Rs2.41bn in SPLY, mainly due to higher interest rates.

On the tax front, the company paid a higher tax worth Rs585.94m against the Rs368.11m paid in the corresponding period of last year, depicting a rise of 59.17% YoY.

Amount in thousand except for EPS

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