Nishat Mills Limited (NML) is the country’s leading textile Company’s – profitability plunge by 75% in 1QFY15. Profit after tax amounted to Rs 400 million as compared to Rs 1,572 million over the corresponding period of last year which translates into earning per
share of Rs 1.14 as against Rs 4.47 during the same period last year. This is primarily due to rising energy cost, sharp appreciation of PKR, lower sales, hike in financing cost and substantial decline in other income.
Spinning Segment drag profitability growth
Spinning segment remain the major laggard in NML as Company sold 7.21 million Kg against 8.01 million kg in 1QFY14. Likewise, yarn prices also depicted decline by 12.4% to Rs 328.75/Kg in 1QFY15 versus Rs 375.45/kg in 1QFY14. That’s why revenue dwindle by 21.1% to Rs 2.37 billion versus Rs 3.01 billon in 1QFY14. This is primarily due to sharp decline in cotton prices and rise in electricity prices.