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NML profit takes a big 130pc leap
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Aamir Abidi
KARACHI: Profit after tax of Nishat Mills Limited (NML), the country's leading textile mill, took a significant jump of 130 per cent to Rs2.91 billion in the fiscal year ended June 30, 2010. Last year, its net profit stood at Rs1.26 billion.
According to the company's financial result posted to Karachi Stock Exchange (KSE), this has translated into earning per share of Rs8.29 diluted (basic Rs10.5) for the fiscal 2009/10 in a wide contrast to Rs3.61 diluted (basic Rs6.23) for the preceding year.
Furthermore, NML also announced a final cash dividend at Rs2.5 per share that is 25 per cent for the year.
NML earned good gross margin of 19.1 per cent during the year owing to rise in cotton prices in the second half (Jan-June), according to a TFD analyst. The gross margin last fiscal year stood at 18.2 per cent.
In addition, the mill saw 63.9 per cent boost in other operating income to Rs982 million from Rs599 million earlier while financing cost skidded 22.1 per cent to Rs1.12 billion as compared to Rs1.44 billion due to decline in Kibor rate. These factors resulted into major rise in profitability.
Net sales of the company increased 32.1 per cent to Rs31.53 billion from 23.87 billion. Similarly, gross profit was up by 37.4 per cent to Rs5.98 billion in July-June 2010 versus Rs4.35 billion in July-June 2009.
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