Nishat Chunian Ltd. (NCL) announced its 4QFY25 results, reporting earnings of mere PkR43mn (EPS: PkR0.18) compared to PkR715mn (EPS: PkR2.98) in SPLY, down 94%YoY. The result came lower than expected, likely due to a decline in exports. Along the result, company announced final cash payout of PkR1.0/sh, taking full-year dividend to PkR2.0/sh:

·        Revenue declined by 11%YoY to PkR18.0bn in 4QFY25 compared to PkR20.3bn in SPLY, likely due to lower export volumes. We estimate the company’s exports to have declined by 26%YoY to US$19mn from US$25mn in SPLY.

·        Gross margins contracted to 10.3% vs. 12.3% in SPLY, mainly due to lower volumetric sales and prices.

·        Operating expenses declined by 16%YoY to PkR536mn from PkR636mn in SPLY, mainly due to lower export volumes.

·        Finance cost declined by 40%YoY to PkR1.1bn compared to PkR1.8bn in SPLY, supported by lower interest rates.

 https://research.akdsl.com/638939006002231688.pdf

 Courtesy – AKD Research