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.
Profit and Loss Statement for the first quarter ended September 30th, 2020 (Rupees) | |||
|---|---|---|---|
| Sep-20 | Sep-19 | % Change |
Sales | 11,939,510,198 | 9,548,553,675 | 25.04% |
Cost of Sales | (10,663,898,753) | (8,352,899,217) | 27.67% |
Gross Profit | 1,275,611,445 | 1,195,654,458 | 6.69% |
Distribution Cost | (282,699,621) | (227,407,462) | 24.31% |
Administrative expenses | (68,157,633) | (77,597,760) | -12.17% |
Other operating expenses | (41,955,202) | (67,331,839) | -37.69% |
Other operating income | 206,354,426 | 88,540,628 | 133.06% |
Finance cost | (459,007,942) | (618,889,628) | -25.83% |
Profit before taxation | 630,145,473 | 292,968,397 | 115.09% |
Taxation | (149,833,784) | (119,701,125) | 25.17% |
Profit after taxation | 480,311,689 | 173,267,272 | 177.21% |
Earnings per share – basic and diluted (Rupees) | 2.00 | 0.72 | 177.78% |
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