The Board of Directors of Nishat Mills Limited (NML), a leading entity within the Nishat Group, has authorized the formation of a private limited company in the United Kingdom (UK). This decision was announced in a notice to the Pakistan Stock Exchange (PSX) on Monday.
According to the notice, “The Board of Directors of Nishat Mills Limited has granted approval for the establishment of a private limited company in the UK through its wholly-owned subsidiary, Nishat International FZE, based in the United Arab Emirates (UAE).” The incorporation of the new company is contingent upon receiving all necessary regulatory approvals and complying with relevant laws.
Company Overview
Founded in 1951, Nishat Mills Limited is one of Pakistan’s largest vertically integrated textile firms. The company operates in several segments including spinning, weaving, printing, dyeing, bleaching, and garment manufacturing. NML’s product range includes yarn, linen, and textiles made from both raw cotton and synthetic fibers. Additionally, the company engages in electricity generation and supply.
Recent Financial Performance
Nishat Mills Limited reported a 51.98% decline in profit after tax, totaling Rs5.35 billion for the first nine months of the fiscal year 2024 (9MFY24). This decrease is attributed to a sharp rise in finance costs and the introduction of a higher super tax rate compared to the previous year. The company’s performance has been affected by various factors, including:
- Global Economic Slowdown: Reduced demand for textile products in international markets.
- Domestic Challenges: Increased energy costs, high financing expenses, and new government taxes have raised operational costs and impacted the textile industry’s performance.
The company’s latest financial results reflect these challenges, indicating a significant strain on the industry and its future outlook.
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