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)
Cost of Sales
Other operating expenses
Profit before taxation
Profit for the year
Earnings per share – basic and diluted (Rupees)
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