Nishat Chunian's net income for FY20 shrinks by 91.6% YoY

October 2, 2020 (MLN): Nishat Chunian Limited (NCL) has witnessed a whopping 91.6% YoY decline in net profits to Rs.265.3 million for FY20, compared to Rs 3.16 billion booked in FY19.

This has caused the earnings per share to plunge by the same percent from Rs.13.19 to Rs.1.11.

During the year, company’s sales were down by 9.3% YoY to Rs 35.6 billion from Rs 39.3 billion in the corresponding period last year.

Accordingly, the gross margins of the company remained stable at 12% on account of lower input cost which shrank by 8.67% YoY.

Other Income has significantly been reduced by 81.5% YoY to Rs.454 million as compared to Rs.2.45 billion during FY19 on account of lower exchange gains and lower dividend from NCPL.

Finance cost has been increased by 22% YoY to Rs 2.66 billion in as compared to Rs 2.17 billion last year mainly due to higher working capital requirement.

Lastly, higher effective taxation of 63% as compared to 12% during FY19, caused the bottom line to plunge further.

Alongside financial results, the Board of Directors of the company also announced a final cash dividend at Re.1 per share i.e. 10% for the period mentioned above.

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