April 24, 2024 (MLN): Nimir Industrial Chemicals Limited (PSX: NICL) recorded a drop of 51.78% YoY in its profitability during the quarter ended March 31, 2024, clocking in its profit after tax at Rs364.95 million [EPS: Rs3.3], compared to a profit of Rs756.77m [EPS: Rs6.84] in the same period last year (SPLY).
Going by the results, the company's top line increased by 10.6% YoY to Rs12.28bn as compared to Rs11.1bn in SPLY.
The cost of sales rose higher than proportionate to sales, which worsened the gross profit by 9.8% YoY to Rs1.88bn in 3QFY24.
Accordingly, the gross margins worsened to 15.27% as compared to 18.74% in SPLY.
On the expense side, the company observed an increase in Administrative expenses by 47.2% YoY and other expenses by 35.4% YoY to clock in at Rs146.52m and Rs53.05m respectively during the review period.
Similarly, NICL expenses towards distribution charges ticked up by 42.62% YoY to stand at Rs148.85m in 3QFY24.
The company's earnings received significant support from a substantial increase in other income, with an inflow of Rs108.34m compared to just Rs8.75m in the same period last year.
However, with rising expenses and finance costs, the company witnessed a major drop in earnings.
NICL’s finance cost surged by 49.9% YoY and stood at Rs1.04bn as compared to Rs693.53m in SPLY, mainly due to higher interest rates.
On the tax front, the company paid a lower tax worth Rs230.99m against the Rs352.03m paid in the corresponding period of last year, depicting a decrease of 34.4% YoY.
| Consolidated (un-audited) Financial Results for quarter ended March 31, 2024 (Rupees in '000) | |||
|---|---|---|---|
| Mar 24 | Mar 23 | % Change | |
| Net revenue | 12,281,474 | 11,100,238 | 10.64% |
| Sales tax, trade discount and commission | (10,405,904) | (9,020,601) | 15.36% |
| Gross Profit / (Loss) | 1,875,570 | 2,079,637 | -9.81% |
| Administrative expenses | (146,523) | (99,522) | 47.23% |
| Distribution costs | (148,848) | (104,365) | 42.62% |
| Other Income | 108,339 | 8,751 | 1138.02% |
| Other operating expenses | (53,051) | (82,177) | -35.44% |
| Finance Cost | (1,039,548) | (693,529) | 49.89% |
| Profit/ (Loss) before taxation | 595,939 | 1,108,795 | -46.25% |
| Taxation | (230,989) | (352,025) | -34.38% |
| Net profit / (loss) for the period | 364,950 | 756,770 | -51.78% |
| Basic earnings/ (loss) per share | 3.30 | 6.84 | – |
Amount in thousand except for EPS
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Posted on: 2024-04-24T15:23:44+05:00
