Nishat Mills profits shrink by 2.67% for 1QFY19

October 26, 2018 (MLN): Nishat Mills Limited’s (NML) profits have deteriorated by 2.67% for the quarter ended 30th September 2018. The growth in the company’s core and non-core expenses along with decrease in profits from associated companies were considered the prime reasons for the variation in profits.  

According to the notification issued to PSX, the sales revenue reported an increase of 16.8%, and the cost of sales showed an increase of 17.57%, leaving the Gross Profits margin to increase by 12.94%

The Distribution and Administrative expenses both up surged by 3.69% and 3.71% respectively, along with non-core expense which grew by 24.5%.

While the Finance cost increased by 8.54%, the taxation expenses on the other hand decreased by 19.41%, curbing the damage caused by increased finance cost.

The biggest shock came from the decrease in Share of profits from associated companies by 73.43% i.e. Rs. 524 million, as it contributed the most in dragging down the profits by Rs. 55 million.

The Earnings per share for the quarter ended 30th September 2018 were 4.37, i.e. 7.22% down by previous year.

Profit and loss account for the quarter ended September 30th 2018 (Rupees’000)

 

Sep-18

Sep-17

% Change

REVENUE

23,311,732

19,958,131

16.80%

COST OF SALES

-19,572,819

-16,647,526

17.57%

GROSS PROFIT

3,738,913

3,310,605

12.94%

DISTRIBUTION COST

-1,232,454

-1,188,641

3.69%

ADMINISTRATIVE EXPENSES

-433,529

-418,040

3.71%

OTHER EXPENSES

-57,373

-46,082

24.50%

OTHER INCOME

500,056

412,506

21.22%

FINANCE COST

-442,793

-407,972

8.54%

SHARE OF PROFIT FROM ASSOCIATED COMPANIES

189,778

714,175

-73.43%

PROFIT BEFORE TAXATION

2,262,598

2,376,551

-4.79%

TAXATION

-242,857

-301,343

-19.41%

PROFIT AFTER TAXATION

2,019,741

2,075,208

-2.67%

EARNINGS PER SHARE BASIC AND DILUTED

4.37

4.71

-7.22%

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Posted on: 2018-10-26T16:14:00+05:00

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