Nishat Mills Limited (NML) April–June 2025: Earnings Preview

Nishat Mills Limited (NML), one of Pakistan’s leading textile companies, is expected to post a much stronger profit for the April–June 2025 quarter (4QFY25) compared to the same period last year. Lower borrowing costs and reduced taxes are the key drivers behind this improvement.

Expected financial results

• Profit After Tax (PAT): PKR 1.8 billion
• Earnings Per Share (EPS): PKR 5.17
• This is a big jump from last year’s EPS of PKR 2.90 (PAT: PKR 1.0 billion).
• The improvement comes mainly from lower finance costs and a big drop in taxes.

Revenue growth

NML’s revenue is expected at PKR 46.0 billion, which is 15% higher than last year’s PKR 40.0 billion. This growth is driven by higher sales volumes.

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Margins and segments

• Gross Margin: Around 10%, unchanged from both last year and last quarter.
• Margins are under pressure in the spinning and weaving segments due to weak demand for basic textiles and squeezed profitability.

Other income & costs

• Other Income: Expected at PKR 2.3 billion, down 13% YoY because of lower dividend income, but up 24% from the previous quarter.
• Finance Cost: Projected at PKR 1.8 billion, down 25% YoY and 6% QoQ, thanks to declining interest rates.

Taxes

The effective tax rate (ETR) is expected to drop to 25% from last year’s very high 49%, giving a significant boost to net profits.

Dividend

NML is expected to announce a cash dividend of PKR 3.0 per share, rewarding shareholders.

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 →

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