NML - 2QFY23 Earnings clock in at PkR10.5/sh, (AKD Off the Analyst's Desk Feb 20, 2023)
AKD, Off the Analyst's Desk
NML: 2QFY23 Earnings clock in at PkR10.5/sh
Nishat Mills Limited (NML) reported its earnings earlier today, wherein the company posted unconsolidated NPAT of PkR3.7bn, higher by 59%YoY, while lower by 11% compared to the earlier quarter. For 1HFY23, the company posted earnings of PkR7.8bn, higher by 40%YoY.
- As expected, the topline shrank on a sequential basis, by ~3%, clocking in at PkR33.2bn. However the drop in net sales was not as pronounced as our expectations of a 6% decline. This indicates a lower than anticipated contraction in the export orders and better translations in the local currency.
- Gross margins for the quarter clocked in at 14.4%, substantially lower than the 19.4% recorded in the earlier quarter, while remaining higher than the 12.7% recorded in the same period last year.
- The company was able to keep its Distribution and Admin expenses in check during the quarter, with the line items dropping by 26% and 11% on a QoQ basis, respectively. The overheads collectively made up 5.5% of the quarterly sales, compared to 6.9% in the earlier quarter.
- Some respite to earnings came in the form of higher other income, clocking in at PkR3.2bn, growing by 1.1x, on both the QoQ and YoY basis.
- However, the benefit of the Other income was somewhat offset by heightened finance costs during the quarter, coming in at PkR1.5bn, compared to PkR832mn in the earlier quarter. This was likely a product of higher borrowing to fund working capital requirements, along with high interest rate prevalent in the economy.
AKD Research
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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.