Nishat Mills Ltd.

Nishat Mills is engaged in the business of textile manufacturing and of spinning, combing, weaving, bleaching, dyeing, printing, stitching, buying, selling and otherwise dealing in yarn, linen, cloth and other goods and fabrics made from raw cotton, synthetic fiber and cloth, and to generate, accumulated, distribute and supply electricity.
  • TickerNML
  • ISINPK0005501017
  • ExchangePakistan Stock Exchange
  • SectorPersonal Goods
  • CountryPakistan

Analysts

NML_2QFY20 Result Review, (AKD, Off the Analyst's Desk, Feb 14, 2020)

NML: 2QFY20 Result Review   In its 2QFY20 result, NML reported net profit of PkR968mn (EPS: PKR2.75) vs. PKR2,100mn (EPS: PKR5.97) in 2QFY19, down 54%YoY. The earnings came in 16% lower than our expectations. The deviation was mainly on two counts: i) lower than expected revenue (~8% below our expectations) and ii) weaker than expected margin at gross level (actual 11.07% vs. expected 12.46%), signifying low materialization of translation gains in PKR terms.   Key highlights: ·   Topline grew by a nominal 6%YoY, signifying weak translation of currency gains in final product prices...

NML & NCL_1HFY20 Result Previews, (AKD Daily, Feb 13, 2020)

NML: 1HFY20 Result Preview NML – low payouts from portfolio companies drag earnings lower: NML is scheduled to announce its 2QFY20 results tomorrow (Feb 14’20), where we expect it to report NPAT of PKR1,154mn (EPS: PKR3.28) vs. PKR2,100mn (EPS: PKR5.97) in 2QFY19, down 45%YoY. The expected decline in bottom-line is due to lower other income (down 66%YoY) – weak payouts from portfolio companies and high base effect as a result of one-off exchange gain in SPLY. Core textile earnings, however, are likely to jump 85%YoY on account of i) topline growth of 15%YoY which is largely driven by higher r...

NML & NCL_1QFY20 Result Previews, (AKD Daily, Oct 28, 2019)

NML – Absence of one-offs and weak core earnings push earnings lower: NML is scheduled to announce its 1QFY20F results tomorrow (Oct 29’19), where it is expected to report NPAT of PkR600mn (EPS: PkR1.71) vs. PkR995mn (EPS: PkR2.83) in 1QFY19, down 40%YoY. Weak core earnings (core EPS: PkR0.76 in 1QFY20, down52%YoY) and lower other income (-23%YoY) are the key factors, pulling earnings down. The weakness in core earnings stems from: i) cyclical headwinds in the low value added segments (i.e. narrowing cotton-yarn spreads) and ii) elevated finance cost due to interest rate hikes (+112%YoY). Sequ...

Team AKD Research

Pakistan Textile: Exports stand at USD2.3bn for 2MFY20,

As per data released by PBS, textile exports increased by 1.9%YoY for 2MFY20 to USD2.3bn with value added segment at the forefront, increasing by 4.5%YoY, while non-value added declined by 5.6%YoY. For Aug’19, seasonality was visible in the 5.3%YoY decline with the exports of value added and non-value added products declining by 4.9%YoY and 6.6%YoY, respectively. Local cotton prices are also reflective of the trade data as they increase by 2.0%MoM in Aug’19 after raw cotton exports increased by 73.8%YoY, imports declined by 27.9%YoY while production remains low. Moving forward, we expect ma...

NML_FY19 Result Review, (AKD, Off the Analyst's Desk, Sep 19, 2019)

NML in its FY19 results reported NPAT of PkR5,859mn (EPS: PkR16.66) vs. PkR4,097mn (EPS: PkR11.65) in FY18, up 43%YoY. The earnings growth was driven by both i) other income (+26%YoY) beefed up by one-off exchange gains and ii) core earnings (+2.4xYoY) though it remained below our expectations.  Key highlights of FY19 result: ·         Topline grew by solid 18%YoY driven by both higher realized prices in PkR terms and higher volumes ·         Margin at gross level jumped 173bpsYoY, benefiting from the up cycle tailwinds. ·         Below the line expenses remained well under control (S&A as...

NML_2QFY20 Result Review, (AKD, Off the Analyst's Desk, Feb 14, 2020)

NML: 2QFY20 Result Review   In its 2QFY20 result, NML reported net profit of PkR968mn (EPS: PKR2.75) vs. PKR2,100mn (EPS: PKR5.97) in 2QFY19, down 54%YoY. The earnings came in 16% lower than our expectations. The deviation was mainly on two counts: i) lower than expected revenue (~8% below our expectations) and ii) weaker than expected margin at gross level (actual 11.07% vs. expected 12.46%), signifying low materialization of translation gains in PKR terms.   Key highlights: ·   Topline grew by a nominal 6%YoY, signifying weak translation of currency gains in final product prices...

NML & NCL_1HFY20 Result Previews, (AKD Daily, Feb 13, 2020)

NML: 1HFY20 Result Preview NML – low payouts from portfolio companies drag earnings lower: NML is scheduled to announce its 2QFY20 results tomorrow (Feb 14’20), where we expect it to report NPAT of PKR1,154mn (EPS: PKR3.28) vs. PKR2,100mn (EPS: PKR5.97) in 2QFY19, down 45%YoY. The expected decline in bottom-line is due to lower other income (down 66%YoY) – weak payouts from portfolio companies and high base effect as a result of one-off exchange gain in SPLY. Core textile earnings, however, are likely to jump 85%YoY on account of i) topline growth of 15%YoY which is largely driven by higher r...

NML & NCL_1QFY20 Result Previews, (AKD Daily, Oct 28, 2019)

NML – Absence of one-offs and weak core earnings push earnings lower: NML is scheduled to announce its 1QFY20F results tomorrow (Oct 29’19), where it is expected to report NPAT of PkR600mn (EPS: PkR1.71) vs. PkR995mn (EPS: PkR2.83) in 1QFY19, down 40%YoY. Weak core earnings (core EPS: PkR0.76 in 1QFY20, down52%YoY) and lower other income (-23%YoY) are the key factors, pulling earnings down. The weakness in core earnings stems from: i) cyclical headwinds in the low value added segments (i.e. narrowing cotton-yarn spreads) and ii) elevated finance cost due to interest rate hikes (+112%YoY). Sequ...

Team AKD Research

Pakistan Textile: Exports stand at USD2.3bn for 2MFY20,

As per data released by PBS, textile exports increased by 1.9%YoY for 2MFY20 to USD2.3bn with value added segment at the forefront, increasing by 4.5%YoY, while non-value added declined by 5.6%YoY. For Aug’19, seasonality was visible in the 5.3%YoY decline with the exports of value added and non-value added products declining by 4.9%YoY and 6.6%YoY, respectively. Local cotton prices are also reflective of the trade data as they increase by 2.0%MoM in Aug’19 after raw cotton exports increased by 73.8%YoY, imports declined by 27.9%YoY while production remains low. Moving forward, we expect ma...

NML_FY19 Result Review, (AKD, Off the Analyst's Desk, Sep 19, 2019)

NML in its FY19 results reported NPAT of PkR5,859mn (EPS: PkR16.66) vs. PkR4,097mn (EPS: PkR11.65) in FY18, up 43%YoY. The earnings growth was driven by both i) other income (+26%YoY) beefed up by one-off exchange gains and ii) core earnings (+2.4xYoY) though it remained below our expectations.  Key highlights of FY19 result: ·         Topline grew by solid 18%YoY driven by both higher realized prices in PkR terms and higher volumes ·         Margin at gross level jumped 173bpsYoY, benefiting from the up cycle tailwinds. ·         Below the line expenses remained well under control (S&A as...

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