The board of Nishat Mills Limited (NML), the flagship company of Nishat Group, has approved to dispose off 100% equity held in Nishat Hospitality while also giving its green-light to establish a wholly-owned subsidiary in Turkiye and a liaison office in Bangladesh.
The company made these announcements in its notice to the Pakistan Stock Exchange (PSX) on Friday. It also announced financial results for fiscal year 2023-24 in the notice, showing a profit of Rs10.5 billion
“The Board of Directors has accorded its approval for the establishment of a wholly owned subsidiary company in Republic of Türkiye subject to applicable regulatory approvals, and in compliance with laws of Republic of Türkiye,” read the notice.
Similarly, NML’s board accorded its approval for setting up a liaison office in Bangladesh, “subject to applicable regulatory approvals, and in compliance with laws of People’s Republic of Bangladesh”.
Additionally, the BoD also approved the disposal of 100% equity held in Nishat Hospitality (Private) Limited, a wholly-owned subsidiary of NML. The development is subject to the approval of shareholders.
Earlier, NML’s board had also given its nod to establish a private limited company in the United Kingdom (UK).
Meanwhile, as per NML’s latest consolidated financial results provided to the PSX on Friday, the company’s profit after tax declined primarily due to a significant increase in the cost of sales and finance cost compared to the corresponding period of the previous year.
Resultantly, the company saw its Earnings Per Share (EPS) at Rs22.38 per share in FY24, as compared to an EPS of Rs32.12 in FY23.
The company also announced a cash dividend of Rs3 per share i.e. 30% for FY24.
The company had earlier stated that high energy cost, costly financing, and the imposition of unprecedented government taxation have escalated the cost of doing business, affecting the textile industry’s current performance and future prospects.
Established in 1951, Nishat Mills Limited is engaged in spinning, weaving, printing, dyeing, bleaching, and stitching and apparel business. NML deals in yarn, linen, and other products made from raw cotton and synthetic fibre.
The company is also in the business of generating and supplying electricity.