Nishat Chunian Power Limited (NCPL) announced its 3QFY19 financial result Tuesday where the company posted a profit after tax (PAT) of PKR 751mn (EPS: PKR 2.05), down by 9% YoY compared to PKR 830mn (EPS: PKR 2.26) during same period last year.
This takes 9MFY19 earnings to PKR 2,606mn (EPS: PKR 7.09) compared to PKR 2,575mn (EPS: PKR 7.01) SPLY. Along with the result, the company also announced a cash dividend of PKR 1.0/share.
During 3QFY19, net sales witnessed a decline of 25% YoY to PKR 2,837mn, which is majorly owing to 68% YoY decline in dispatches to 73 GWh.
However, furnace oil prices went up by 45% YoY. On QoQ basis, net sales have declined by 45% – again 37% lower dispatches remained the primary reason behind this decline.
Gross margins of the company witnessed an increase of 15pps YoY to 45% in 3QFY19, mainly due to 21% YoY PKR depreciation and lower load factor, we view.
Finance cost has witnessed an increase of 45% YoY to PKR 372mn due to higher reliance on short term borrowings and higher interest rates. As of Dec’18, the short term borrowings went up by 39% YoY to PKR 9.0bn.
The company announced a cash dividend of PKR 1.0/share.
