KARACHI: Nishat Mills Limited (NML), the flagship enterprise of the Nishat Group, has announced plans to sell its entire stake in Nishat Hospitality while also moving forward with the establishment of a wholly-owned subsidiary in Türkiye and a liaison office in Bangladesh.
These developments were disclosed in a notice to the Pakistan Stock Exchange (PSX) on Friday, where the company also shared its financial results for the fiscal year 2023-24, reporting a profit of Rs10.5 billion.
The notice stated, “The Board of Directors has approved the creation of a wholly-owned subsidiary in the Republic of Türkiye, pending necessary regulatory approvals and compliance with Turkish laws.” Similarly, the board sanctioned the opening of a liaison office in Bangladesh under similar conditions.
Additionally, NML will proceed with the divestment of its 100% equity in Nishat Hospitality (Private) Limited, which will require shareholder approval.
Previously, the board had also endorsed the formation of a private limited company in the United Kingdom.
In its financial report, NML noted a decrease in profit after tax, attributed mainly to rising sales and finance costs compared to the previous year. Consequently, the company’s Earnings Per Share (EPS) fell to Rs22.38 in FY24 from Rs32.12 in FY23.
NML declared a cash dividend of Rs3 per share, equating to 30% for FY24. The company attributed its declining performance to escalating energy costs, expensive financing, and significant government taxation, all of which have heightened the operational costs and hindered the textile sector’s prospects.
Founded in 1951, Nishat Mills Limited specializes in spinning, weaving, printing, dyeing, bleaching, and apparel production, working with yarn, linen, and other products derived from raw cotton and synthetic fibers. The company also engages in electricity generation and supply.
