Nishat Mills earnings surge 31pc


Nishat Mills earnings surge 31pc KARACHI: Nishat Mills announced on Friday a consolidated profit attributable to majority shareholders of Rs1.6 billion for the first quarter of 2016-17, up 31 per cent year-on-year.

Topline Securities analyst Salman Rashid said the result was above market estimates.

Consolidated sales declined 2pc to Rs17bn in the three-month period, which was primarily attributed to lower revenues of the company on a standalone basis.

The company’s gross margins remained flat at 16.6pc for the quarter, which was in line with the last three-year average gross margin of around 17pc. Gross profit clocked up at Rs2.8bn, down 2.5pc from a year ago.

On an unconsolidated basis, sales of the company fell 7pc quarter-on-quarter to Rs11bn, which was due to lower exports. Moreover, the lower cotton output likely affected sales growth.

The company’s share price received a nominal bump on Friday to close at Rs136.98.

Fauji Cement

Fauji Cement announced on Friday its earnings for 2015-16 amounted to Rs5.37bn, up 30pc on an annual basis. The company also posted a net profit of Rs608.9m for July-Sept, which was down 41pc from a year ago.

Its sales amounted to Rs20.04bn for 2015-16, up 8pc year-on-year. Shajar Capital analyst Ayesha Fayyaz said it was due to dispatches of 2.9m tonnes against 2.5m tonnes a year ago. Sales for the July-Sept quarter went down 9pc on a quarterly basis to Rs4.39bn.

“The FCCL announcement surprised the market as no impairment loss was booked for the company’s cement silos and mill and the board paid a final dividend at Re1, taking full year payout to Rs2.75 per share,” said analyst Faizan Ahmed of JS Global.

The company’s stock price rose 2.8pc on Friday to close at Rs34.56.


Silkbank posted a net profit of Rs505.2 million for Jan-Sept as opposed to a net loss of Rs65.5m recorded in the same period a year ago.

In a stock notice on Friday, Silkbank announced its net interest income after provisions for the nine-month period amounted to Rs2.75 billion, up 10.4 per cent from a year ago.

The bank’s net assets decreased 18.8pc during the period under review while net investments dropped 5.3pc.

The share price of Silkbank shed 1.2pc on Friday to close at Rs1.64.

The steady improvement in profitability is the result of the implementation of a well-formulated business strategy, according to a statement released by Silkbank.

Bank of Punjab

The unconsolidated profit of Bank of Punjab for Jan-Sept rose 6.7pc to Rs3.93bn year-on-year, the bank announced in a stock filing on Friday.

Earnings per share for the nine-month period amounted to Rs2.53 as opposed to Rs2.37 a year ago.

The bank’s net interest income for Jan-Sept clocked up at Rs7.92bn after rising 50.6pc over the same period of the last year.

The bank’s non-interest income amounted to Rs3.96bn, down 32.6pc from a year ago.

Its share price shed 3.6pc on Friday to clock up at Rs15.74.

Standard Chartered

Standard Chartered reported a net profit of Rs7.3bn for the first nine months of 2016, which is down 2.3pc year-on-year, according to a securities filing on Friday.

Net interest income after provisions amounted to Rs15.3bn for Jan-Sept, down 3.5pc from Jan-Sept 2015.

According to a press release, the bank continues to invest in its digital infrastructure to enhance banking experience through the introduction of digital solutions. “We are well positioned to take advantage of long-term growth opportunities in Pakistan,” the statement quoted the bank CEO as saying.

Its share price declined 4.5pc on Friday to close at Rs21.

Murree Brewery

Murree Brewery reported a net profit of Rs284m for the first quarter of 2016-17, up 35pc year-on-year. The company’s net revenue for the period grew 24pc to Rs1.9bn.

Its share price registered a nominal decline on Friday to close at Rs1,111.04.


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