Nishat Chunian swings back to profit with Rs260m earnings

February 26, 2025 (MLN): Nishat Chunian Limited (PSX: NCL) returned to profitability, reporting a net profit of Rs259.59 million [EPS: Rs1.08] for the half-year ended December 31, 2024, compared to a loss of Rs385.11mn [LPS: Rs1.60] in the same period last year (SPLY).

The company has declared an interim cash dividend of Rs1 per share, equivalent to 10%.

The company’s revenue stood at Rs44.02bn, witnessing a slight decline of 0.97% YoY.

Despite this, gross profit came in at Rs4.58bn, reflecting a 17.6% decline due to an increase in the cost of sales, which rose by 1.41% YoY to Rs39.44bn.

On the expense side, administrative expenses increased by 22.42% to Rs292.25mn, and other operating expenses surged by 41.44% to Rs88.31mn.

However, the distribution cost saw a slight decline of 4.91% to Rs1.03bn.

Notably, other operating income surged significantly by 158.65% to Rs408.89mn, cushioning the impact of rising expenses.

The company also benefited from a decline in finance costs, which dropped by 33.07% YoY to Rs2.76bn, mainly due to lower borrowing costs.

As a result, profit before taxation turned positive at Rs272.78mn, compared to a loss of Rs380.49mn in SPLY.

Tax expenses increased by 185.76% YoY to Rs13.19mn, but the company still managed to post a net profit, marking a turnaround from last year’s losses.

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