By: Azee Securities Private Limited
Nishat Chunian Limited (NCL) announced its first quarter result for the period ended September 2015. In unconsolidated statement, the company reported a loss of 108 million (LPS: 0.54/share) in 1QFY16, as compared to a loss of 238 million (LPS: 1.19/share) reported during the same period previous year. The main reason behind the loss was the abrupt rupee depreciation that resulted in an foreign exchange loss and missing of dividend form associated companies.
Gross profit improved: The company reported 8% growth in its gross profit during first quarter with an amount of Rs 438 million as against Rs 406 million it stated during first quarter of 2015 due to better profit from weaving business. Net Sales during the 1QFY16 were Rs 5.8 billion, up by 10% from Rs 5.3 billion during the corresponding period last year. Profitability of the company operations has improved; however, as stated above, the unexpected rupee depreciation resulted in a substantial forex loss.
Weaving Division up gradation in process: NCL is updating its weaving department as well, for which the installation of narrow width looms is underway. Furthermore, company has effectively accomplished the task of incorporating Digital Printing machine for its Home Textile division.