Nishat Power Limited (NPL) announced its 1HFY24 financial result today where the company posted a profit after tax (PAT) of PKR 2,316mn (EPS: PKR 6.54), up by 13% YoY compared to PKR 2,044mn (EPS: PKR 5.77) in SPLY. In 2QFY24 bottom line arrived at PKR 858mn (EPS: PKR 2.42) vis-à-vis PKR 1,101mn (EPS: PKR 3.11), a drop of 22% YoY. With this result, the company also announced a cash dividend of PKR 2.50/share.

Result Highlights       

•        During 2QFY24, net sales witnessed an increase of 9% YoY to clock in at PKR 2,433mn. The rise in sales is on the back of higher dispatches, in tandem with rise in penal income. On a QoQ basis sales plunged by 75% due to dip in dispatches, declining by 90% QoQ

•        During 1HFY24, the gross margins of the company clocked in at 18% as compared to 17% in 1HFY23. In 2QFY24 gross margins declined by 20ppts arriving at 34%, this is attributable to lower period weighing factor, we view

•        Despite higher interest rates, finance costs decreased by 72% YoY to settle at PKR 8mn during 2QFY24. The decline is mainly attributable to a reduction in short-term borrowings.

Courtesy – AHL Research