Mettis Global News
Mettis Global News
Mettis Global News AD
Mettis Global News AD

Trending :

NCL’s profits nosedive by 35% owing to absence of exchange gain

Share on facebook
Share on twitter
Share on linkedin
Share on whatsapp

February 27, 2020 (MLN): Nishat (Chunian) Limited (NCL) has reported 35.2% YoY decline in its net profits to Rs 2.2 billion for the six months ended on December 2019 against Rs 3.45 billion earned in the same period of last year.

This has translated in to earnings per share which exhibited a decline of 52.4% from Rs 10.60 per share to Rs 5.04 per share.

The decline in NCL’s profits is mainly on the back of substantial decline in Other income (-93%) which was abnormally high in the corresponding period of last year due to one-off gain on sale of subsidiary (entertainment business) and exchange activities.

Moreover, financial charges which rose by Rs 957.8 million further put a limit on company’s profitability.

Besides, Net sales of the company remained subdued as it only recorded a marginal increase. The increase was driven by exports of yarn as the company generate around 60% of its revenue from yarn sales. Whereas, gross margins of the company jumped from 91% to 21% on account of decline in cost of sales by around 2%.

Profit and Loss Statement for the half-year ended December 31st 2019 (Rupees)




% Change





Cost of Sales




Gross Profit




Distribution Cost




Administrative expenses




Other expenses




Other income




Finance cost




Profit before taxation








Profit for the year




Earnings per share – basic and diluted (Rupees)





Copyright Mettis Link News

Posted on: 2020-02-27T16:04:00+05:00