Nishat Chunian Ltd’s earnings grow over two-fold during 1QFY21

October 29, 2020 (MLN): Nishat Chunian Limited has disclosed its financial results for 1QFY21 ended September 2020 wherein the company reported its net profit of Rs 480 million (EPS: Rs 2), showing 2.7 times YoY growth against net profits of Rs 173 million (EPS: 0.72) in the same period of last fiscal year.

As per the financial statement, as a glut of demand for value-added textile business has come forth with the retail sector opening up worldwide post-COVID-19 lockdown, NCL’s sales revenue went up by 25.04% YoY. Moreover, the exports for this quarter were also quite impressive.  As a result, the gross profits of the company increased by 7% YoY despite an increase in the cost of sales by 27.67% YoY.

On the cost side, the major highlight is the increase in its major expense heads as distribution cost jumped by 24% YoY. While administrative cost and other expenses decreased by 12% and 38%, YoY, respectively.

The increase in earnings is primarily attributed to 2.3 times YoY increase in other income, standing at Rs 206 million during the period under review.

Meanwhile, a 26% decline in finance cost to Rs 459 million also contributed to the bottom line.

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