NCPL's profit jumps by 44% in 1QFY24 despite sales drop

October 12, 2023 (MLN): Nishat Chunian Power Limited (PSX: NCPL) 's profitability rose significantly by 44.33% YoY in 1QFY24, clocking in its profit after tax at Rs1.39 billion [EPS: 3.77],  compared to Rs960.02 million [EPS: 2.61] profit reported in the Same Period Last Year (SPLY), company's filing on PSX revealed today.

Going by the results, the company's top line went down by 20.75% YoY to Rs6.81bn as compared to Rs8.59bn in SPLY.

The cost of sales fell by 28.04% YoY and the decline was higher than that of sales, which improved the gross profit by 21.30% YoY to Rs1.54bn in 1QFY24.

On the expense side, the company observed a rise in Administrative expenses by 6.97% YoY to clock in at Rs40.14m  respectively during the review period.

Conversely, NCPL's other expenses were reduced by 99% to 1.05m in 1QFY24, compared to Rs121.07m reported in 1QFY23.

During the period under review, other income contracted by 27.94% YoY to stand at Rs28.29m in 1QFY24 as compared to Rs39.26m in SPLY.

The company’s finance costs decreased by 25.79% YoY and stood at Rs140.72m as compared to Rs189.62m in 1QFY23, mainly due to higher interest rates.

On the tax front, the company incurred a tax expense of Rs70 million during the review period, whereas in 1QFY23, the tax expense was nil.

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