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)
Cost of Sales
Other operating expenses
Other operating income
Profit before taxation
Profit after taxation
Earnings per share – basic and diluted (Rupees)
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