Karachi March 30 2022: Nimir Industrial Chemicals Limited (NIMIR) inform that the expansion of “Aerosols Plant” has been successfully completed and started its commercial production, according to company filling to the exchange.
With this expansion, the Company has two lines with combined capacity of 80 million units (aerosol cans) per year based on three shifts operation.
The diversified product range helped the company grow its top-line by 32% to PKR. 16 billion during first six months of current fiscal year. The gross profit for the period, however, increased by only 11% mainly due to increasing feedstock and fuel prices, which the company could not fully pass with the objective to maintain its market share. The increase in policy rate and enhanced borrowings to meet the working capital requirements adversely affected the performance with increased financial cost which jumped by more than PKR. 177 million, an increase of over 89%. This has diluted the profit of the Company by PKR. 48 million representing a decrease of 6% in profit after tax over the last year.
International Palm oil prices, which is company’s major raw material hit a record high in the first half of the current financial year. Adverse balance of payment is also exerting pressure on exchange rate, which may result in further devaluation of PKR.
Nimir Industrial Chemicals Limited was incorporated in Pakistan as a Public Limited Company. The Company is engaged in manufacturing and sales of chemical products. In previous year, the Company was a subsidiary of Nimir Resources (Private) Limited (‘NRPL’). As a result of voluntary winding up of NRPL, shares held by NRPL have been transferred to its sponsors, who have made a consortium through an agreement to control the Company.
