Nishat Power takes a shocking jolt, records nearly Rs3bn loss

February 27, 2025 (MLN): Nishat Power Limited (PSX: NPL) has reported a net loss of Rs3 billion for the half-year ended December 31, 2024, compared to a net profit of Rs2.3bn in the corresponding period last year.

Despite the reported loss, the board of directors has announced a second interim cash dividend of 20%, amounting to Rs2 per share, for the year ending June 30, 2025.

This dividend follows the 20% first interim cash dividend already paid earlier in the fiscal year.

Consequently, the basic and diluted loss per share stood at Rs7.8, compared to earnings per share of Rs6.54 in 2024.

The decline in profitability is primarily attributed to a sharp 71% decrease in revenue from contracts with customers, which stood at Rs3.5bn, down from Rs12bn in 2024.

Despite a significant 81.5% drop in the cost of sales to Rs2bn, the company’s gross profit declined by 24.6% to Rs1.67bn.

Administrative expenses increased by 15.7% to Rs249.7 million, while other income surged by 101.3% to Rs769.7mn, partially offsetting the impact of declining revenues.

The company’s profit from operations stood at Rs2.2bn, reflecting an 8% decrease from the previous year’s Rs2.4bn.

However, a significant increase in finance costs, rising by 314.4% to Rs42mn, further pressured the bottom line.

Additionally, a substantial levy expense of Rs101.5mn, marking a 472.6% increase, contributed to the overall loss before taxation of Rs2.7bn.

Taxation expenses decreased by 61.6% to Rs13.7mn, yet the company ended the period with a net loss of Rs2.76bn.

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