Karachi, September 26, 2013 (PPI-OT): NML surpasses expectations, posts 65% YoY jump in profits in FY13 Nishat Mills Limited (NML) announced its FY13 financial results yesterday.
According to Arif Habib Limited the company reported a substantial growth of 17% YoY in its top line to PKR 52.4bn. Support from associate companies’ dividends further supported the bottom-line where the total other operating income saw a 2% YoY jump to PKR 2.73bn, (PKR 7.79/share impact).
On the whole, the company posted an EPS of PKR 16.63 in FY13, compared to an EPS of PKR 10.04 in similar period last year, a massive jump of 65% YoY. In line with Arif Habib Limited expectations, NML declared a cash dividend of PKR 4.00/share with the full-year results.
For the 4QFY13, NML posted an EPS of PKR 4.94/share, a massive jump of 38% QoQ, primarily on an operating income increase of 48% QoQ mostly from interim dividends of the associate companies. Company’s top line also escalated by 8% QoQ in 4QFY13.
Financial Highlights PKR mn 4QFY13 3QFY13 QoQ FY13 FY12 YoY Sales 13,530 12,579 8% 52,426 44,924 17% Gross profit 2,422 2,238 8% 9,044 6,789 33% Gross margin 17.9% 17.8% 0.1% 17% 15% 2.1% Distribution expenses 667 586 14% 2,529 2,555 -1% Other operating income 802 543 48% 2,739 2,684 2% Profit from operations 2,234 1,841 21% 7,974 5,842 36% Operating margin 17% 15% 2% 15% 13% 2% Finance cost 387 399 -3% 1,618 1,761 -8% Profit after taxation 1,736 1,254 38% 5,847 3,529 66% EPS (PKR) 4.94 3.57 - 16.63 10.04 - DPS (PKR) 4.00 - - 4.00 3.50 14% Sources; Company Accounts, AHL Research
New power venture and considerable financial support to subsidiaries Along with the FY13 results, the company’s BoD also announced its intention to participate in the bidding of a 590MW Mahal Hydropower project, which has been initiated by the Private Power and Infrastructure Board gov’t of Pakistan. To recall, NML already owns 51% in Nishat Power Ltd (NPL, 200MW), 32% in Lalpir Power Ltd (LPL, 362MW) and 28% in Pakgen Power Ltd (PKGP, 365MW). Since NML’s dividend income is on the rise, given its spreading footprints in the power sector (dollar-based tariffs and better cash recoveries recently), the new venture would add significantly to the bottom-line should NML become successful in the bid.
The BoD also announced PKR 400mn as equity injection to NML’s wholly-owned subsidiary Nishat Hospitality (Pvt) Ltd that is building a 4-star hotel (for cost overruns and project modifications). Another investment chunk of PKR 2.0bn has also been allocated to Nishat Linen (Pvt) Ltd to support the working capital requirements of the subsidiary. Arif Habib Limited believes cash outflows on part of these injections would eventually be compensated through better returns and dividends from the same.