NISHAT CHUNIAN (NCHU.

KA)
TEXTILE INDUSTRY
Nishat (Chunian) Limited is a Pakistan-based company engaged in the textile industry. The Company is engaged in
business of spinning, weaving, dyeing, printing, stitching, processing, doubling, sizing, buying, selling and otherwise
dealing in yarn, fabrics and made-ups made from raw cotton, synthetic fiber and cloth. It is also involved in the
generation, accumulation, distribution, supply and sale of electricity. The Company operates in four segments:
spinning segment, weaving segment, processing and home textile segment and power generation segment. The
Company had one subsidiary, Nishat Chunian Power Limited.

News
OCT 2012
Nishat Chunian the textile manufacturing company profits plummeted 52% to Rs699 million for the fiscal
year 2011-12 from Rs1.5 billion in the preceding year
The decline in the spinning business margins was amid sharp fall in yarn prices and higher fuel costs during the
year, according to analysts.
Dividend income from Nishat Chunian Power (NCPL) supported the bottom-line as Nishat Chunian earned Rs469
million in other incomes from NCPL during the period. The power subsidy of the Nishat Chunian Group announced
an Rs2 per share cash dividend along with the announcements of its results. Similarly, falling finance cost on
account of lower Karachi inter-bank offer rate (Kibor) during the year further shored up profitability.
Demand for cotton from China and approval of duty-free access to the European Union will continue supporting
the bottom-line going ahead.
Other factors improving profitability include the interest rates cuts announced by State Bank of Pakistan,
reduction in gas infrastructure development cess alongside prioritised gas supply and a steady dividend stream
from NCPL. However, gas and power outages remain a risk for the company making it vulnerable to incurring
higher fuel and energy costs on account of increased usage of furnace oil and diesel.
Nishat Chunian Power profits depicted a 27% growth to Rs2.03 billion compared with Rs1.61 billion last year.
(check out nishat chunian power).
OCT 24 2012

Nishat Chunian Ltd announced that it is not to pay dividend for the three months ended September 30,
2012.
Nov 22 2012
Nishat Chunian Ltd announced that the 10% bonus shares for the year ended June 30, 2012, as dispatched to
the shareholders on November 20, 2012.

Jan 8 2013

Nishat Chunians is going to invest $1 million to set up a wholly owned subsidiary in the United States for
marketing and trading its textile products
JAN 30 2013

Nishat (Chunian) Limited announced that it has initiated acquisition of assets of Taj Textile Mills Limited
related to its spinning production which were being sold under the Court Auction Notice pending before the
honorable Lahore High Court, Lahore. With this acquisition, the production capacity of the Company will be
expanded by 22,000 spindles.
TEXTILE INDUSTRY NEWS

Pakistan's garment exports soar in July-Dec'12

Energy shortage caused Rs 200b annual loss to textile sector (dec 30)
Textile millers, workers in gas protest (jan 27)
The eight week long gas suspension had crippled industrial activities and put the $ 14-billion industry on the brink of disaster.
FEB 2013

Uninterrupted electricity supply to the textile mills on independent feeders in Punjab is being restored with effect
from 6th February 2013
APTMA spokesman has said that the government has agreed to restore gas supply from 7th February to the textile
industry in Punjab for 2 days a week basis.

Analysts

CHARTS

BOTTOM LINE
FINANCIALS NOT AS GOOD,
TEXTILE SECTOR IS SUFFERING, SLIGHTLY GOOD NEWS RECENTLY
STOCK IS OVERBOUGHT
TREND MAY CONTINUE IN SHORT TERM BUT OVERALL TOO RISKY TO INVEST NOW
NISHAT POWER MAY BE BETTER THAN THIS