NML posts EPS Rs5.38 in 1HFY20

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STAFF REPORTER KARACHI Nishat Mills Limited (NML) announced its financial result of the company for 1HFY20, recording a PAT of PKR 1,891mn (EPS: PKR 5.38), down by 40% YoY from PKR 3,164mn (EPS: PKR 9.00). During 2QFY20, the earnings nosedived by 54% YoY to PKR 968mn (EPS: PKR 2.75) compared to PKR 2,100mn (EPS: PKR 5.97) while witnessing a jump of 5% QoQ owing to 37% higher other income QoQ. Net Sales for 1HFY20 settled at PKR 32,868mn (up by 7% YoY) attributable to rupee depreciation of 15% YoY against green back and increase in prices of valueadded products. During 2QFY20, net sales increased by 6% YoY and 6% QoQ to PKR 16,935mn. Despite PKR depreciation, topline witnessed meagre growth due to global economic slowdown resulted in a lower export demand. Gross margins during 2QFY20 sank by 72bps YoY and 247bps QoQ due to increase in local cotton prices by 4% YoY and 9% QoQ to PKR 8,964/ maund compared to PKR 8,650/maund in 2QFY19.