Karachi, February 23, 2018 (PPI-OT): NML: 1HFY18 EPS clocks in at Rs7.59, up 5% YoY


The Board of Directors of Nishat Mills Limited (NML) announced today the company’s results for 1HFY18, where earnings clocked in at Rs2.67bn (EPS: Rs7.59), up 5% YoY from Rs2.55bn (EPS: Rs7.25) in 1HFY17. For 2QFY18, earnings stood 3% YoY higher at Rs1.96bn, up by 3% YoY and in-line with our expectations. Net Revenues improved by 2% YoY, whereas gross margins witnessed slight improvement (9bps YoY). In addition, effective cost management with distribution expenses (down 4% YoY) and admin expenses (down 10% YoY) added to the company’s bottom-line growth. Sequentially, earnings jumped 177% QoQ, which was mainly due to higher dividend income received in the current quarter.


Along with the result, the company also announced its intent to (1) increase investment by up to Rs960mn in Hyundai Nishat Motor (Private) Limited (HNMPL) and (2) to arrange Standby Letter(s) of Credit for up to Rs1.20bn for a 7.5 year period as a guarantee to lenders of HNMPL. We maintain NML as our top pick among JS Textile Universe with a Target Price of Rs178.