Lahore, Nishat Chunian Limited (NCL) announced a significant turnaround in its financial performance for the third quarter of fiscal year 2024, posting a net profit after tax of PkR381 million. This marks a reversal from a loss of PkR991 million in the previous quarter, driven by increased sales and improved gross margins.

According to AKD Securities Limited, the company’s total revenue for the quarter was PkR24.2 billion, a 20% increase from the same period last year. This rise in revenue is likely attributed to seasonal sales boosts during the Eid festivities and increased selling prices. Gross margins also improved, rising by 1.5 percentage points to 12.2%, which is believed to be due to the higher selling prices.

Distribution expenses for NCL rose by 14% quarter over quarter to PkR624 million, mainly due to increased transportation charges associated with volumetric growth. Meanwhile, finance costs decreased by 17% to PkR1.8 billion, potentially as a result of reduced debt and a slight decline in average KIBOR rates.

For the first nine months of fiscal year 2024, Nishat Chunian reported a slight loss of PkR0.1 per share, an improvement over the loss per share of PkR6.0 for the same period last year, primarily due to higher sales and better gross margins.