Karachi February 20 2023: Nishat Mills Limited post profitability of PKR 1,369 million in quarter ended December 2022 on healthy margins, according to company to the exchange.
Company share price gains 90 paisa or 1.7 percent to trade at PKR 51.90 at Pakistan Stock Exchange on Monday.
Profit after tax increased by PKR 1,369 million (37.17%) in the current quarter ended 31 December 2022 as compared to the corresponding quarter of financial year 2022.
The main reason of increase in profitability was increase in topline by PKR 4,674 (14.07%) from PKR 28,500 million to PKR 33,170 million.
Gross profit also increased in line with increase in sales. Gross profit to sales percentage showed significant improvement despite increase in raw material cost. It was 14.36% in the current quarter as compared to 12.66% in the corresponding quarter of the last year. Moreover, distribution cost decreased by PKR 43 million due to decrease in freight and shipment costs.
“Massive floods during the monsoon season have further increased the problems of the sector because major part of cotton crop has damaged that would reduce the local cotton supply. Although, cotton prices in international market have decreased but cost of importing has massively increased because of rapid depreciation of PKR against USD” says Company Chief Executive Officer Mian Umer Mansha.
