Karachi: In the latest financial disclosures, ILP and NML have reported their earnings for the fourth quarter of FY24, revealing a mixed economic performance amid challenging market conditions. ILP’s earnings saw a decline compared to the same period last year, while NML’s gross margins continued to be squeezed, affecting their bottom line significantly.
According to AKD Securities Limited, ILP recorded earnings of PkR3.9 billion for 4QFY24, marking a 13% decrease from the previous year’s PkR4.5 billion. This decline was primarily attributed to a contraction in gross margins and rising finance costs, despite a 20% increase in topline revenues reaching PkR42.1 billion. NML’s results were more stark, with net profits plummeting to PkR228 million from PkR1.0 billion year-on-year, a 78% drop. This significant decline was largely due to decreased gross margins, which fell from 13% to 10% in the current quarter, impacted by lower international selling prices and increased cotton costs.
For ILP, the total yearly earnings summed up to PkR12.2 per share, decreasing from PkR14.4 per share in the previous year, mainly due to a gross margin contraction across the fiscal year. The company also declared a final dividend of PkR3.0, taking the full-year payout to PkR5.0 per share. Analysts have set a target price of PkR75 per share for ILP by June 2025, with an expected dividend yield of 7%.
On the other hand, NML faced harsher conditions, with their annual performance also showing signs of strain. The company’s other income showed some resilience, increasing by 35% year-on-year to PkR2.7 billion, boosted by higher dividends from various subsidiaries and associates. Despite this, the company’s final dividend stood at PkR2.0, reflecting the overall challenging environment.
These results underscore the volatile nature of the textile sector, influenced by fluctuating commodity prices and export dynamics. Both companies are navigating these challenges with cautious optimism, adjusting their strategies to mitigate financial pressures and capitalize on any market recoveries.