NICL declares Rs15 DPS despite 45% profit drop in FY24

September 20, 2024 (MLN): Nimir Industrial Chemicals Limited (PSX: NICL) experienced a fall of 45.4% YoY in its earnings during FY24, clocking in at Rs1 billion [EPS: Rs9.07], compared to a profit of Rs1.84bn [EPS: Rs16.62] in the previous fiscal year.

Along with the results, the company announced a final cash dividend of Rs15 per share for the year ended June 2024.

Going by the results, the company's top line dropped by 4.3% to Rs41.93bn as compared to Rs43.83bn in SPLY.

The cost of sales also fell by 4.5%, but as the decline in sales was of a greater proportion, the gross profit worsened by 3.7% to Rs6.18bn in FY24.

To note, the gross margins improved to 14.7% as compared to 14.6% in SPLY.

On the expense side, the company's administrative expenses rose 19.8% YoY to Rs579.54m, while distribution costs rose by 22.6% to Rs 500.58 million.

On the other hand, other operating expenses fell 26.8% YoY to Rs153.71m.

NICL reported a significant improvement in its other income, which expanded  70.8% to Rs304.58m in FY24 as compared to Rs178.3m in FY23.

However, declining revenue along with increased expenses weighed over the company's performance.

Further worsening the situation, NICL bared finance costs worth Rs3.8bn, surging by 40.6% YoY, mainly due to higher interest rates.

On the tax front, the company paid a lower tax worth Rs450.03m against the Rs952.33m paid in the corresponding period of last year, depicting a decrease of 52.7%.

Amount in thousand except for EPS

Copyright Mettis Link News