Nishat Mills' profit rises to Rs12bn in FY23

September 26, 2023 (MLN): Nishat Mills Limited (PSX: NML) witnessed a 17.98% YoY increase in profitability during FY23, achieving a profit after tax of Rs12.17 billion, a significant improvement compared to the Rs10.31bn earned in FY22.

This surge in profits also translated to an enhanced earnings per share (EPS) of Rs34.6, up from Rs29.33 in FY22.

Along with the results, the company announced a final cash dividend of Rs5 per share, i.e. 50% for the year ended June 30, 2023.

Going by the results made available by NML to the PSX, the company's top line surged by 22.45% YoY to Rs141.76bn as compared to Rs115.77bn in FY22.

The cost of sales also rose by 22.6% YoY but was lesser than proportionate to sales increase, which improved the gross profit by 21.59% YoY to Rs21.08bn in FY22.

Moreover, the company earned other income worth Rs10.2bn in FY23, signifying an impressive increase of 83.11% YoY as compared to Rs5.57bn in the previous.

On the expense side, the company observed an increase in distribution cost by 10.1% YoY and other expenses by 11.12% YoY to clock in at Rs6.24bn and Rs557.84m respectively during the review period.

The company’s finance costs inflated by 3.2x YoY and stood at Rs6.93bn as compared to Rs2.16bn in FY22, mainly due to higher interest rates.

On the tax front, the company paid a higher tax worth Rs3.24bn against the Rs2.6bn paid in the corresponding period of last year, depicting an increase of 24.84% YoY.

Amount in thousand except for EPS

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