NCL -1QFY24 Result Review - Topline surge drives 13%QoQ PAT growth, (AKD Off the Analyst's Desk Oct 31, 2023)
Nishat Chunian Limited (NCL) announced its 1QFY24 results, where the company posted a PAT of PkR0.5bn (EPS: PkR2.1) vs. a profit of PkR0.4bn (EPS: PkR1.9) in the preceding quarter, an increase of 13%QoQ, owing to a substantial growth in topline and relatively flat gross margins i.e., 13.7% vs. 14.1% in the previous quarter.
- Topline for the quarter clocked in at PkR24.2bn, posting an increase of 18%/59% QoQ/YoY compared to PkR20.5/15.2bn in 4QFY23/SPLY. The said increase is possibly due to an uptick in the export sales coupled with PkR depreciation.
- Gross margins remained almost flat QoQ, clocking in at 13.7% vs. 14.1% in the previous quarter, where we believe the impact of higher fuel and energy costs is largely offset by lower cotton prices.
- Distribution expenses inflated by 13%QoQ, clocking in at PkR482mn vs. PkR425mn in the preceding quarter. This increase is possibly due to increased freight charges owing to increased fuel prices. Conversely, admin expenses decreased by 29%QoQ, arriving at PkR106mn vs PkR149mn in 4QFY23.
- Finance cost for the quarter clocked in at PkR2.0bn vs PkR1.6bn in 4QFY23, an increase of 22%QoQ, possibly due to the increase in ST borrowings amidst composites’ liquidity crunch, and overall high effective interest rate.
AKD Securities Ltd. is one of the leading securities firm in Pakistan, providing a comprehensive range of investor focused services, including equity brokerage, economic and securities research, investment banking and financial advisory services. AKD Securities accounts for more than 6% of the average daily value of the Karachi Stock Exchange. AKD Securities was the first brokerage house to launch an online trading platform in Pakistan in November 2002 and now has the largest market share with over 6000 customers. This has helped diversify and expand the retail investor base in the country and ushered in a whole new universe of investors to the stock market.
AKD Securities Ltd. caters to a diversified group of domestic and international institutional investors, high net worth individuals and upscale retail clients, including expatriate Pakistanis. With high quality research, unparalleled execution and distribution capability for both regular and large block trades, AKD Securities Ltd. has earned an outstanding reputation in the Pakistani securities industry.Outside of commercial banks, AKD Securities Ltd. is one of the biggest capital market firms in the country. AKD Securities is the leader in raising and providing risk capital in underwriting, market making and mergers and acquisitions in Pakistan. Good corporate governance and professionalism are emphasized throughout the firm and AKD Securities Ltd. is amongst the very few companies to have introduced a firm-wide comprehensive CODE of ETHICS, overseen by an independent compliance manager.Ultimately, our success is based on the quality of service we provide to our customers and the trust and confidence reposed in us by them. Our focus, therefore, remains on customer satisfaction at all levels in the company.
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