{"id":11151,"date":"2025-08-13T14:56:07","date_gmt":"2025-08-13T09:56:07","guid":{"rendered":"https:\/\/ksestocks.com\/blog\/?p=11151"},"modified":"2025-08-13T14:56:09","modified_gmt":"2025-08-13T09:56:09","slug":"ncl-4qfy25-result-preview-profits-dip-despite-higher-sales","status":"publish","type":"post","link":"https:\/\/ksestocks.com\/blog\/ncl-4qfy25-result-preview-profits-dip-despite-higher-sales\/","title":{"rendered":"NCL 4QFY25 Result Preview: Profits Dip Despite Higher Sales"},"content":{"rendered":"\n<p><strong>Nishat Chunian Limited (<a href=\"https:\/\/ksestocks.com\/blog\/tag\/ncl\/\" data-type=\"post_tag\" data-id=\"208\" target=\"_blank\" rel=\"noreferrer noopener\">NCL<\/a>) <\/strong>is expected to announce its <strong>4QFY25<\/strong> results soon, with earnings likely to come in lower compared to last year despite stronger sales volumes.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Profitability declines year-on-year<\/h2>\n\n\n\n<p>NCL\u2019s profit after tax (PAT) is estimated at <strong>PKR 541 million<\/strong> for the quarter, translating to an earnings per share (EPS) of <strong>PKR 2.25<\/strong>. This is about <strong>24% lower<\/strong> than the same period last year, when the company earned <strong>PKR 715 million (EPS: PKR 2.98)<\/strong>.<br>The decline is mainly due to <strong>weaker gross margins<\/strong> and <strong>higher tax expenses<\/strong>. However, on a quarter-on-quarter basis, profits are expected to be <strong>~13% higher<\/strong> due to lower finance costs.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Sales show healthy growth<\/h2>\n\n\n\n<p>Revenue for the quarter is expected at <strong>PKR 23.8 billion<\/strong>, an increase of <strong>17% year-on-year<\/strong> and <strong>2% quarter-on-quarter<\/strong>. This rise is largely driven by <strong>higher sales volumes<\/strong>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Margins under pressure<\/h2>\n\n\n\n<p>Gross margins are expected to come in at <strong>~10%<\/strong>, which is about <strong>2 percentage points lower<\/strong> than last year. This shows that while sales volumes improved, profitability per unit sold has declined.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Finance cost drops sharply<\/h2>\n\n\n\n<p>NCL\u2019s finance cost is projected at <strong>PKR 913 million<\/strong>, down <strong>50% year-on-year<\/strong> and <strong>6% quarter-on-quarter<\/strong>, thanks to <strong>lower interest rates<\/strong>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Tax impact<\/h2>\n\n\n\n<p>The company\u2019s effective tax rate (ETR) is expected to remain high at <strong>39%<\/strong>, similar to the previous quarter, further weighing on net profits.<\/p>\n\n\n\n<p><strong>Source: Insight Securities <\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>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.<\/p>\n","protected":false},"author":11,"featured_media":6853,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[154,138],"tags":[208],"class_list":["post-11151","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","category-financials","tag-ncl"],"featured_image_src":{"landsacpe":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/NCL-STOCK-PSX-1140x445.png",1140,445,true],"list":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/NCL-STOCK-PSX-463x348.png",463,348,true],"medium":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/NCL-STOCK-PSX-300x188.png",300,188,true],"full":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/NCL-STOCK-PSX.png",1920,1200,false]},"_links":{"self":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/11151","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/comments?post=11151"}],"version-history":[{"count":1,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/11151\/revisions"}],"predecessor-version":[{"id":11152,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/11151\/revisions\/11152"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media\/6853"}],"wp:attachment":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media?parent=11151"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/categories?post=11151"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/tags?post=11151"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}