Hifsa Raja

Nishat Power Limited’s returns on sales increased to Rs11.4 billion during the first three months of the ongoing fiscal year 2022-23 (3MFY23) compared to Rs5.7 billion over the corresponding period of the previous year, registering a 100% growth year-on-year. The company’s profit-after-taxation increased only 3% to Rs943 million in 3MFY23 from Rs915 million over the corresponding period of FY22, reports WealthPK.

Nishat Power Limited directly owns 250,000 fully paid ordinary shares of Rs10 each, accounting for 25% of its equity. The company is an unquoted public firm limited by shares established for the upkeep of a coal-fired power plant in Punjab. The revenue gained from the sale of electricity to the power purchaser – National Transmission and Dispatch Company and Central Power Purchasing Agency – is the main source of income for Nishat Power.

Earnings growth analysis

The company’s earnings per share (EPS) growth remained strong in 2019 and 2020 before plunging in 2021. However, the EPS growth rebounded in 2022. The EPS also showed a mixed trend from 2019 to 2022.

Industry comparison

Kohinoor Energy Limited, Saif Power Limited, Lalpir Power Limited, and Altern Energy Limited have all been regarded as rivals of Nishat Power Limited. Market capitalisation can be used by investors to compare one company's size to others as it indicates the cost investors are willing to pay for a company's stock. In comparison to Nishat Power Limited’s Rs6 billion market cap, Saif Power Limited has the highest market cap of Rs7.3 billion. With a value of Rs6.2 billion, Altern Energy Limited has the second-largest market capitalisation among its rivals.

Profitability

The company’s net profit and gross profit margins remained robust in 2020, but there was a significant drop in both the margins in 2021 and 2022.

Company profile

Nishat Power is a public limited company incorporated in Pakistan on February 23, 2007 under the Companies Ordinance, 1984 (now the Companies Act, 2017). The company is a subsidiary of Nishat Mills Limited. The principal activity of the company is to build, own, operate and maintain a coal-fired power station with a gross capacity of 200MW in Jamber Kalan, Pattoki tehsil of Kasur district, Punjab.

Credit: Independent News Pakistan-WealthPk