In spite of the ongoing malaise of the textile industry, Nishat (Chunian) Limited (PSX: NCL) has been performing exceptionally well; for the nine months ended FY17, the company’s top line is up 16 percent year-on-year, while the bottom-line has grown by an astounding 83 percent. Both gross and net margins have inched up as well.
Impressively, the company has largely kept its distribution costs in check (2%), while a significant increase in other income (34%) gave the bottom-line a huge boost.
As per its half-yearly Director’s Report, the textile juggernaut has successfully managed to enhance its market share in terms of exports via ‘intelligent marketing tactics.’ Moreover, the company’s spinning division has seen major investment in innovation and up-gradation, along with capacity expansion.
Nishat (Chunian) has a number of things going on: the company’s subsidiary cinema business, “Universal Cinemas,” started operations in Lahore during the year; its retail venture, “The Linen Company (TLC),” is seeing an addition in the current fiscal year; and the “NC Electric Company Limited (NCECL)” is expected to lower the power cost of the company.
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