NCPL: Profits fall by 32% YoY due to absence of debt repayment portion in sales

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

Posted on: 2021-02-25T14:15:00+05:00

39917