Lahore June 6 2022: Nishat Chunian Limited (NCL) is in process of conducting major BMR primarily to enhance operational efficiencies in the spinning segment along with some capacity enhancement and upgradation in weaving, processing and madeups segments, reported by the company.
The above-mentioned projects are projected to be funded through a combination of debt and equity. The leverage indictors are projected to decrease in FY23 onwards.
Company drive profitability from sound growth in revenues on account of increase in volumetric sales and average product prices during FY21 and the ongoing year. Gross profit margins have improved considerably mainly due to higher contribution margin of spinning segment in line with favorable yarn prices and economies of scale leading to fixed overheads absorption. The company generated healthy bottom line leading to notable improvement in liquidity profile as reflected by adequate cash flows in relation to outstanding obligations.
Nishat (Chunian) Limited is a public limited company incorporated in Pakistan under the repealed Companies Ordinance, 1984. The Company is engaged in the business of spinning, weaving, dyeing, printing, stitching, processing, doubling, sizing, buying, selling and otherwise dealing in yarn, fabric and made-ups made from raw cotton, synthetic fiber and cloth, and to generate, accumulate, distribute, supply and sell electricity.
