February 25, 2021 (MLN): Nishat Chunian Power Limited (NCPL) has witnessed a 32% YoY decline in net profits to Rs 1.42 billion during 1HFY21, compared to the profits of Rs 2 billion in the corresponding period last year.
The earnings per share of the company clocked in at Rs 3.88/sh against Rs 5.71/sh during 1HFY20.
The decline in profitability was attributable to lower topline earnings compared to the same period last year. The revenues of the company dropped by 25.4% YoY owing to removal of the debt component from the tariff and lower FO prices.
Gross margins declined by 8pps to 34% during 1HFY21 as compared to 42% in the corresponding period last year largely due to the absence of debt component and lower O&M savings.
Furthermore, the company observed a decline in other income by 25.8% YoY, however, this was counterbalanced by a reduction in administrative expenses by 16% YoY.
Finance costs dropped by 57% YoY Rs 487.2 million during the period as compared to Rs 1.13 billion in the corresponding period last year on account of a decline in mark-up cost amid a substantial dip in interest rates and decrease in short term borrowings.
Profit and Loss Statement for the Half-year ended December 31, 2020 ('000 Rupees) | |||
|---|---|---|---|
| Dec-20 | Dec-19 | % Change |
Sales | 5,803,591 | 7,782,328 | -25.43% |
Cost of Sales | (3,843,907) | (4,496,388) | -14.51% |
Gross Profit | 1,959,684 | 3,285,940 | -40.36% |
Administrative expenses | (63,901) | (76,169) | -16.11% |
Other operating expenses | – | (599) | -100.00% |
Other income | 16,814 | 22,661 | -25.80% |
Finance cost | (487,222) | (1,133,982) | -57.03% |
Profit before taxation | 1,425,375 | 2,097,851 | -32.06% |
Taxation | – | – | – |
Profit for the year | 1,425,375 | 2,097,851 | -32.06% |
Earnings per share – basic and diluted (Rupees) | 3.88 | 5.71 | -32.05% |
Copyright Mettis Link News
39917
