Nishat Power benefits from Energy Sukuk Payments as earnings surge by 31%

July 28, 2020 (MLN): Nishat Power Limited has announced its financial results for the year ended June 30, 2020, which shows that the company has made profits of Rs. 4.9 billion (EPS: Rs. 13.96), i.e. nearly 31% higher than the earnings of last year.

The company also announced a final cash dividend of Rs. 1 i.e. 10% per share for the year, which is in addition to the interim cash dividend already paid at Rs. 1 per share i.e. 10%.

Despite an underwhelming performance in sales, the company managed to increase its gross profits by 28%, which can be attributed to a decline in the cost of sales by 50%.

According to the projections made by brokerage houses, the fall in sales was due to lower dispatches made during the year, while the decline in the cost of sales was a result of PKR depreciation.

It is pertinent to note that the company benefitted majorly from the Energy Sukuk ll Payments, under which it received an amount of Rs. 1.6 billion.

The finance cost saw a surge of 21% on the back of an increase in short term borrowings made by the company during the period under review.

Despite a positive performance, the company still failed to meet the market expectations wherein the surge in profits was expected to be around 139%.

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