Nishat Chunian Power faces significant decline in profit

April 25, 2025 (MLN): Nishat Chunian Power Limited (PSX: NCPL) reported a significant decline in its net profit for the nine-month period ending March 31, 2025, posting a loss after tax of Rs3.28 billion (EPS: -Rs8.93), compared to a profit of Rs3.85bn (EPS: Rs10.48) in the same period last year (SPLY).

The company has declared a second interim cash dividend of 20%, amounting to Rs2 per share, for the year ending June 30, 2025, in addition to the 50% interim cash dividends already paid.

The company’s revenue from contracts with customers fell sharply by 67.7%, reaching Rs4.03bn, down from Rs12.48bn in SPLY.

This decline was accompanied by a 77.3% reduction in the cost of sales, which stood at Rs1.93bn compared to Rs8.51bn in SPLY.

As a result, gross profit decreased by 47.1% to Rs2.1bn, down from Rs3.97bn in the same period last year.

Despite this, the company managed to boost its other operating income, which increased by 134.9% to Rs553.76 million, compared to Rs235.71m in SPLY.

On the expense side, administrative expenses rose sharply by 81.2% to Rs238.41m, reflecting increased operational costs.

Finance costs, however, saw a significant drop of 94%, falling to Rs13.52m, down from Rs225.25m in the same period last year.

The company’s loss before taxation reached Rs3.19bn, compared to a profit of Rs3.85bn in the prior year.

Taxation expenses also increased sharply, rising by 27,727.6% to Rs88.77m, up from Rs0.32m in SPLY, further contributing to the overall loss.

As a result of the challenging financial performance, Nishat Chunian Power Limited posted a negative earnings per share (EPS) of Rs8.93, reflecting a decline of 14.8% compared to the previous period’s EPS of Rs10.48.

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