Nishat Mills Limited (NML) is anticipated to announce its financial results for FY25 soon. We expect the company to report a profit after tax (PAT) of PKR 6,796 million, which translates to an earnings per share (EPS) of PKR 19.33, reflecting a year-over-year (YoY) increase of 7%. On a quarterly basis, profitability is projected to surge by 92% YoY, reaching PKR 1,956 million (EPS: PKR 5.56).

The company’s revenue is expected to rise by 10% YoY to PKR 43.8 billion, driven by an increase in local sales. Gross margins are predicted to improve by 414 basis points YoY, primarily due to a reduction in raw cotton prices. Additionally, finance costs are expected to decrease by 15% YoY, amounting to PKR 2,027 million, as a result of declining interest rates.

However, other income is estimated to decline by 30% YoY, attributed to a fall in both interest income and dividend income. Alongside the results, we anticipate the company will declare a cash dividend of PKR 3.50 per share, with a total of PKR 7.00 per share for FY25.

Courtesy: AHL Research