Expectations for Third Quarter Earnings Announced for ILP, NML, and NCL

Karachi, The latest earnings previews for ILP, NML, and NCL indicate varying financial performances for the third quarter of fiscal year 2024. ILP is expected to report an increase in earnings due to growth in exports, while NML anticipates higher earnings from increased sales and gross margins. In contrast, NCL is projected to show a recovery from a previous loss, supported by improved gross margins and lower financial charges.

According to AKD Securities Limited, ILP is forecasted to post a third quarter earnings per share (EPS) of PkR2.3, reflecting a 10% quarter-over-quarter increase, driven primarily by a 7% increase in export sales. The company's gross margins are expected to remain stable at 27.9%, despite rising raw material and energy costs, balanced by higher export prices. Distribution expenses are projected to rise by 10% due to increased export volumes, while finance costs are anticipated to decrease by 2%.

NML is set to release its third quarter results with an expected EPS of PkR3.3, up from PkR3.1 in the previous quarter. The company's total revenue is predicted to reach PkR42.0 billion, marking a 14% increase, attributed to higher sales both domestically and internationally, along with increased selling prices. Gross margins are expected to improve slightly to 12.6%. However, finance costs are likely to rise by 26% due to an increase in short-term borrowings.

NCL, on the other hand, is projected to report an EPS of PkR0.4 for the third quarter, a significant improvement from a loss per share of PkR3.8 in the second quarter. The expected turnaround is primarily due to higher gross margins resulting from increased selling prices and a 10% quarter-over-quarter increase in sales, driven by seasonal factors. Finance costs for NCL are expected to decrease by 9%, reflecting reduced debt and slightly lower average KIBOR rates.