NRSL reports 6% rise in H1FY25 net profit to Rs134.4mn

February 14, 2025 (MLN): Nimir Resins Limited (PSX: NRSL) has reported around 6% increase in net profit for the half-year ended December 31, 2024, reaching Rs134.45 million, compared to Rs126.38mn in the same period last year.

The company's earnings per share (EPS) stood at Rs0.95, up from Rs0.89 in December 2023.

NRSL's revenue from sales grew by 4%, reaching Rs5.6bn compared to Rs5.4bn in the previous year.

However, sales tax increased by 6.5%, reducing the net sales growth to 3.6%, which stood at Rs4.8bn.

Despite higher sales figures, the company faced rising costs impacting its overall profitability.

The cost of sales surged by 4.9%, amounting to Rs4.2bn, leading to a 5.6% decline in gross profit, which stood at Rs526.4mn compared to Rs557.6mn in the corresponding period.

Additionally, total operating expenses rose by 3.6% to Rs143.9mn due to an increase in distribution costs by 12.7%, while administrative expenses saw a slight decline of 4.1%.

NRSL's operating profit dropped by 8.6%, reaching Rs382.5mn from Rs418.7mn in the previous period.

The company's finance cost decreased by 13.2%, indicating improved debt management.

However, other operating expenses increased by 8%, while other income declined sharply by 48%, adversely affecting overall earnings before tax.

The company recorded a profit before taxation of Rs176mn, reflecting an 11.5% decline compared to the prior year’s Rs198.84mn.

However, taxation expenses dropped by 42.8%, contributing to the rise in net profit for the period.

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