NCL 4QFY25 Result Preview: Profits Dip Despite Higher Sales

Nishat Chunian Limited (NCL) is expected to announce its 4QFY25 results soon, with earnings likely to come in lower compared to last year despite stronger sales volumes.

Profitability declines year-on-year

NCL’s profit after tax (PAT) is estimated at PKR 541 million for the quarter, translating to an earnings per share (EPS) of PKR 2.25. This is about 24% lower than the same period last year, when the company earned PKR 715 million (EPS: PKR 2.98).
The decline is mainly due to weaker gross margins and higher tax expenses. However, on a quarter-on-quarter basis, profits are expected to be ~13% higher due to lower finance costs.

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Sales show healthy growth

Revenue for the quarter is expected at PKR 23.8 billion, an increase of 17% year-on-year and 2% quarter-on-quarter. This rise is largely driven by higher sales volumes.

Margins under pressure

Gross margins are expected to come in at ~10%, which is about 2 percentage points lower than last year. This shows that while sales volumes improved, profitability per unit sold has declined.

Finance cost drops sharply

NCL’s finance cost is projected at PKR 913 million, down 50% year-on-year and 6% quarter-on-quarter, thanks to lower interest rates.

Tax impact

The company’s effective tax rate (ETR) is expected to remain high at 39%, similar to the previous quarter, further weighing on net profits.

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Source: Insight Securities

⚠️ This post reflects the author’s personal opinion and is for informational purposes only. It does not constitute financial advice. Investing involves risk and should be done independently. Read full disclaimer →