AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Lahore: Nishat Mills Ltd (NML) held its corporate briefing today, revealing a strategic focus on energy cost reduction and diversification to counter a slight dip in revenues. The company reported a profit after tax of Rs5.1 billion for FY25, equating to an earnings per share of Rs14.52, despite a 3% year-on-year revenue decline attributed to weak exports and unfavorable currency shifts.
Revenues for NML reached Rs207 billion in FY25, a decrease driven by an 11% drop in dividend income, notably a 59% and 88% decline from Lalpir Power and PakGen Power, respectively. However, savings in financial charges provided some relief. On a standalone basis, the company saw an 11% revenue growth in FY25 and 4% in 1QFY26, with margins holding steady at 11%.
The management emphasized efforts to rationalize energy costs, increase reliance on renewable energy sources, and streamline raw cotton procurement by favoring local cotton. This approach aims to sustain earnings growth, leveraging this year’s cost advantage in local cotton with plans to adjust the local/imported cotton mix to 70%/30%, up from 60%/40% last year.
NML’s investment strategy includes significant commitments to renewable energy, such as solar, biomass, and battery storage, with the goal of reducing the average cost of power from Rs35-38 per unit to Rs29 per unit. This would involve decreasing dependency on RLNG-fired CPP, FO, and Wapda.
Additionally, the company is expanding its product-category mix by investing in the work-wear and denim segments. The management highlighted that the technical textiles sector could provide a stable revenue stream and higher margins, alongside geographic expansion into markets such as Europe, Taiwan, and China.
NML also announced plans to invest up to Rs5 billion in Nishat Sutas Dairy, an increase from the current Rs3.9 billion investment, further diversifying its portfolio.