NICL records Rs365m profit in 1QCY24, down 52% YoY

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.

Amount in thousand except for EPS

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