Karachi: Nishat Chunian Ltd. (NCL) has announced a loss of 22 million Pakistani Rupees (PkR) for the second quarter of the fiscal year 2026, a significant decline from the profit of PkR231 million recorded during the same period last year. The company's latest financial performance was influenced by increased finance costs and taxation.
According to AKD Securities Limited, the report revealed that the company's revenue decreased by 2% year-over-year to PkR20.3 billion, compared to PkR20.7 billion in the same quarter of the previous fiscal year. This decrease is attributed to a decline in domestic spinning sales, though an increase in exports is expected to partially mitigate this downturn.
Despite the revenue drop, Nishat Chunian Ltd. experienced a slight improvement in gross margins, which rose to 11.8% from 11.5% in the prior year. This improvement is mainly due to reductions in cotton and energy costs. Operating expenses saw a 2% increase year-over-year, reaching PkR631 million, primarily driven by higher administrative expenses.
The company also declared a half-yearly dividend of PkR1.0 per share, despite the financial challenges faced during the quarter.
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