AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Lahore: Nishat Chunian Limited (NCL) held a corporate briefing today, revealing a 6% year-over-year increase in earnings for the fiscal year 2025. The company reported earnings of Rs751 million, equivalent to an earnings per share of Rs3.13, despite a 4% decline in overall revenue to Rs85.5 billion.
The decline in revenue was largely attributed to a 13% drop in the spinning segment, influenced by weaker demand from China following the imposition of U.S. tariffs. This led to a contraction in the segment’s gross margin from 8% to 5%. China and Bangladesh continue to be key markets for NCL’s exports.
Conversely, the weaving and home textile segments experienced growth, with revenues increasing by 10% and 3% year-over-year, respectively. The weaving segment benefited from a significant 32% rise in local sales, despite an 18% decline in exports.
In the first quarter of fiscal year 2026, NCL reported a substantial rise in earnings, reaching Rs516 million, or an EPS of Rs2.15, marking a 14-fold increase year-over-year. The improvement was largely driven by lower cotton prices and reduced finance costs.
The management expressed optimism about the company’s future, aiming for Rs100 billion in sales during FY26 and focusing on net profitability. NCL plans to source at least 70% of its cotton locally to capitalize on lower domestic prices while keeping a six-month inventory.
NCL’s energy consumption stood at 300 million KWh for FY25, with surplus electricity sold externally. The average power cost is currently Rs28-32 per unit.
Future expansions are on the horizon for the spinning and weaving segments. The company plans to introduce open-end yarn production in spinning and import 22 new looms for weaving, reflecting a strategic move towards growth and enhanced operational capacity.