Nishat Chunian swings to profit, earns Rs692m profit in FY24

September 26, 2024 (MLN): Nishat Chunian Limited (PSX: NCL) swung to a positive bottom line, earning Rs691.67 million [EPS: Rs2.88] in FY24, compared to a loss of Rs998.93m [LPS: Rs4.16] incurred in the same period last year (SPLY).

As per the results, NCL reported a bottom line of Rs88.88bn, around 31.4% higher compared to Rs67.63bn in FY23.

In line with expanded sales, the cost of sales rose by 27.7%. However, it was outpaced by revenue growth, which led to a 65.6% increase in gross profit, reaching Rs10.91bn in FY24.

The gross margins improved to 12.3% as compared to 9.7% in SPLY.

On the expense side, the company's administrative expenses rose 7.6% YoY to Rs535.26m, distribution cost rose 30% YoY to Rs2.1bn, and other operating expenses rose 75.9% YoY to Rs139.61m.

NCL also faced a setback with other income, which dropped by 7.6% to Rs865.73 million in FY24, compared to Rs937.28m in FY23.

The company’s finance cost rose by 43.1% and stood at Rs7.75bn as compared to Rs5.42bn in SPLY, mainly due to higher interest rates.

Nonetheless, the company's expanded sales remained significant enough to cover all higher expenses, including the drop in other income and the increase in finance costs, resulting in a transition to profit for the company.

On the tax front, the company paid a lower tax worth Rs552.18m against the Rs912.01m paid in the corresponding period of last year, depicting a fall of 39.5%.

Amount in thousand except for EPS

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