Nishat Chunian Power Limited (NCPL) announced its 4QFY22 financial result today where the company posted a profit after tax (PAT) of PKR 600mn (EPS: PKR 1.63), up by 35% YoY compared to PKR 446mn (EPS: PKR 1.21) in same period last year. This took the FY22 profit after tax to PKR 2,504mn (EPS: PKR 6.82), vis-à-vis PKR 2,509mn (EPS: PKR 6.83) during FY21. Along with the result, the company also announced a cash dividend of PKR 10.0/share. To recall, the company last paid a dividend alongside the Mar’19 financial result.

Result Highlights                                                       

·        During 4QFY22, net sales witnessed an increase of 203% YoY to clock-in at PKR 9,846mn. The rise in sales was owed to an 87% jump in dispatches to 271 GWh coupled with 133% higher FO prices. During FY22, sales also increased by 118% YoY due to the aforementioned reasons.

·        During 4QFY22, gross margins of the company declined by 18ppts YoY to 10%. The decline in margin is attributable to higher load factor.

·        Finance cost increased by 1% YoY to PKR 266mn. The rise in finance costs is on account of higher interest rates, however short-term borrowings went down by 46% YoY to PKR 5.9bn as of Mar’2

Courtesy – AHL Research