Nishat Chunian Reports a 34.04% Increase in Profits for FY19October 7, 2019
Nishat Chunian Limited, which is one of the largest textile composites in Pakistan, has announced its financial results for the fiscal year 2018-19.
The textile maker reported a profit of Rs. 3.16 billion, showing a growth of 34.04%. The company had booked a profit of Rs. 2.36 billion last year.
The increase in profitability can be attributed to a number of factors, which are: increased margin of spinning business, higher dividend income, and devaluation of the rupee. Nishat’s management believes that the results can be further improved by committing to efficient cost management, BMR, better tax planning and making prudent investment strategies.
The company’s operations remained profitable as net sales rose to Rs. 39.34 billion in 2019, up by 10.63% from Rs. 35.56 billion in 2018. The driving force behind the increase in sales was spinning and home textile divisions, whose sales increased by 12.5% and 15.5% respectively.
Spinning remains the main source of revenue for the company, whereas the home textile division has shown tremendous growth in terms of revenue. The cost of sales was posted at Rs. 4.88 billion as compared with Rs. 31.28 billion last year.
Overall expenses of the company grew to Rs. 3.39 billion, up by 12.62% from Rs. 3.01 billion recorded last year. However, other income of the company almost doubled to Rs. 2.45 billion, up by 116.81% from Rs. 1.13 billion.
Earnings per share of the company increased to Rs. 13.19 as compared with Rs. 9.84 last year. The board of directors of the company announced to pay Rs. 2.5 per ordinary share cash dividend.
At the time of filing this report, NCL’s shares at the bourse were trading at Rs. 38.00, up by 2.45% or Rs. 0.91 with a turnover of 943,000 shares on Monday.
Source: Pro Pakistani