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.

 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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Posted on: 2020-10-29T17:34:00+05:00

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