Karachi: NCL: Dividend income and exchange gain keep bottom line green
According to Elixir Securities Limited,
|NCL Outstanding shares: 162mn|
|Admin and Sell||305||170||-44%||468||316||-33%|
|Source: Company Accounts, Elixir Research|
Margins remain subdued
Core operations of NCL posted a loss of PKR0.25/share during the quarter. Textile operations witnessed a significant drop in margins as gross margin for 2QFY12 clocked in at 8%, dropping by 5pp as compared to last year. 1HFY12 gross margin remained weak at 8% in comparison to 18% last year. Margins of NCL dropped on the back of higher volatility in yarn/cotton prices. Average cotton procurement cost of NCL remained at PKR 5,500/maund while prices moved in the range of PKR 4,900-6,450/maund.
NCPL dividend and PKR depreciation supports income
Other income for the quarter clocked in at PKR410mn, showing a growth of 98% over last year. Rise in other income was mainly driven by dividend income from NCPL and foreign exchange gain realized during the quarter. Dividend income from NCPL for 2QFY12 is estimated at PKR1.08/share as final dividend of PKR1/share for FY11 was booked during the quarter.
Foreign exchange gain for the quarter is estimated at PKR1.09/share which has been the result of PKR depreciation of 3.1% during the quarter.