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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