NML & NCL 4QFY23 Result Previews, (AKD Daily Sep 26, 2023)
AKD Daily
NML & NCL 4QFY23 Result Previews
NML- 4QFY23 earnings to clock in at PkR5.2/sh: Nishat Mills Limited (NML) is scheduled to announce its Jun'23 quarter result later today, wherein we expect the company to post NPAT of PkR1.8bn or PkR5.2/sh. The quarter's earnings are expected to be 45% lower than those reported in the previous quarter, with the attrition attributable to a drop in other income amidst absence of dividend income from power subsidiary/associates and higher tax charges. Topline is expected to increase by 13%QoQ to clock in at PkR42bn, owing to higher textile exports that increased by 7.1%QoQ. Furthermore, gross margins are expected to improve by 185bps to 14.9% for the quarter, due to ~1%QoQ decline in the local cotton price. Effective taxation is expected to clock in at PkR1.8bn (ETR: 50%) due to supertax imposition. Finally, we expect company to pay a cash dividend of PkR6.0/sh.
NCL- Earnings anticipated at PkR0.9/sh in 4QFY23: NCL is expected to release its 4QFY23 earnings on Thursday where the company is expected to post a PAT of PkR214mn (EPS: PkR0.9) vs. PkR389mn (EPS: 1.6) in previous quarter (↓45% QoQ). The aforementioned decline in the PAT is majorly attributable to fall in other income and increased financial charges and taxation. Topline is expected to increase by 12%/32% QoQ/YoY in line with the textile exports growth. Additionally, the gross margins are set to show a positive growth, reaching 12.5% majorly due to the easing of domestic cotton prices and availability. Effective taxation is foreseen at PkR175mn (ETR: 45%) due to the retrospective imposition of supertax. Overall for the full year, LAT of PkR1.2bn (LPS: PkR5.1) is expected against earnings of PkR7.5bn in FY22.
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