Nishat Mills earns Rs1bn profit in three months

September 27, 2024 (MLN): Nishat Mills Limited (PSX: NML) earned a profit after tax of Rs1.02 billion [EPS: Rs2.9] in the quarter ending June 2024, compared to a profit of Rs1.03bn [EPS: Rs2.93] in the same period last year (SPLY).

Along with the results, the company announced a final cash dividend of Rs3 per share i.e. 30%.

Going by the results, the company's top line grew 7.7% to Rs39.99bn as compared to Rs37.15bn in SPLY.

However, the cost of sales also rose by 10.8%, which worsened the gross profit by 13.2% to Rs4.18bn in Q4 FY24.

The gross margins fell to 10.5% as compared to 13.0% in SPLY.

During the period under review, other income grew by 30.3% to stand at Rs2.63bn in Q4 FY24 as compared to Rs2.02bn in SPLY.

On the expense side, the company's administrative expenses rose 17.6% YoY to Rs628.99m, selling and distribution expenses fell 0.7% YoY to Rs1.61bn, and other operating expenses rose 137.2% YoY to Rs180.81m.

The company’s finance cost shrunk 1.9% and stood at Rs2.39bn as compared to Rs2.43bn in SPLY.

On the tax front, the company paid a lower tax worth Rs979.51m against the Rs1.14bn paid in the corresponding period of last year, depicting a decrease of 13.8%.

This translates to an effective tax rate of 49.0% as compared to 52.5% in SPLY.

Amount in thousand except for EPS

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