Nishat Chunian profit grows despite revenue plunge

October 29, 2024 (MLN): Nishat Chunian Power Limited (PSX: NCPL) recorded a 5.8% growth in its net profit despite a plunge in revenue.

The company posted a profit after tax of Rs1.47 billion [EPS: Rs3.99] during the quarter ending September 2024, up from Rs1.39bn [EPS: Rs3.77] in the same period last year (SPLY).

Its revenue fell significantly by 69.5% to Rs2.08bn as compared to Rs6.81bn in SPLY. Gross profit decreased 10.2% to Rs1.38bn in Q1 FY25.

The gross margins, however, improved notably to 66.6% as compared to 22.6% in SPLY.

During the period under review, other income expanded 745.4% to stand at Rs239.14m in Q1 FY25 as compared to Rs28.29m in SPLY.

On the expense side, the company's administrative expenses rose 66.3% from a year ago to Rs66.76m, selling and distribution expenses rose to Rs0m, and other operating expenses rose 6253.0% to Rs66.71m.

The company’s finance cost marked a decline of 99.4% and stood at Rs0.9m as compared to Rs140.72m in SPLY.

On the tax front, the company paid a higher tax worth Rs21.71m against an expense paid worth Rs0.07m in the corresponding period of last year, a rise of 30917.1%.

This translates to an effective tax rate of 1.5% as compared to 0.0% in SPLY.

Amount in thousand except for EPS

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