October 28, 2020 (MLN): Nishat Mills Limited (NML) has declared its financial results today for the quarter ended September 30th, 2020, according to which it has posted its net profits of Rs 1.69 billion (EPS: Rs 3.52), down by 26.40% YoY compared to the same period last year net profit of Rs 2.29 billion (EPS: Rs 4.67).
According to the research note by AKD, the decline in earnings is primarily attributable to a 70% YoY decline in other income, which is due to the absence of dividend income from MCB following the SBP's moratorium on payouts. (MCB contributed PKR1.0 per share to NML’s pre-tax earnings in 1QFY20).
During the period, the top-line earnings of the company increased marginally by 0.30% YoY while the cost of sales rose by 6% YoY. Accordingly, gross margin shrank from 20% to 16% during the said period which was partially offset by lower other expenses (down by 65.6% YoY).
However, a 28% decline in finance cost to Rs 485 million along with the share of profit from the associates of Rs 355 million provided much-needed respite to the bottom line.
Consolidated Profit and Loss Statement for the quarter ended September 30th, 2020 ('000 Rupees) | |||
|---|---|---|---|
| Sep-20 | Sep-19 | % Change |
Revenue | 25,554,947 | 25,477,386 | 0.30% |
Cost of Sales | (21,546,236) | (20,316,100) | 6.05% |
Gross Profit | 4,008,711 | 5,161,286 | -22.33% |
Distribution cost | (1,446,472) | (1,548,121) | -6.57% |
Administrative expenses | (522,771) | (502,624) | 4.01% |
Other expenses | (81,764) | (237,655) | -65.60% |
total expenses | (2,051,007) | (2,288,400) | -10.37% |
| 1,957,704 | 2,872,886 | -31.86% |
Other income | 157,398 | 521,367 | -69.81% |
profit from operation | 2,115,102 | 3,394,253 | -37.69% |
Finance cost | (485,466) | (673,640) | -27.93% |
| 1,629,636 | 2,720,613 | -40.10% |
share of profit/(Loss) from associates | 355,902 | (118,447) |
|
Profit before taxation | 1,985,538 | 2,602,166 | -23.70% |
Taxation | (294,467) | (304,526) | -3.30% |
Profit for the period | 1,691,071 | 2,297,640 | -26.40% |
Earnings per share – basic and diluted (Rupees) | 3.52 | 4.67 | -24.63% |
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