Nimir Industrial Chemicals Limited recorded earnings per share of PKR 18.29 in FY25, as compared to earnings per share of PKR 9.07 in FY24.
The company recorded net sales of PKR 45.3 Bn, up 8% from PKR 41.9 Bn in FY24. Along with this, it saw its gross margin remain stable at 15%. As a result, gross profit increased 8% from PKR 6.2 Bn in FY24 to PKR 6.7 Bn in FY25. In 1QFY26, the company saw its gross margin decline to 13% compared to 14% in SPLY. Management highlighted that the majority of the company’s revenue comes from corporate sector clients.
Recently, the company has launched a new product namely chlorinated paraffin wax which has significant applicability on the coating of cables and as such has received a good response from the market. It was highlighted that the company holds over 75% market share in the oleo chemicals business with many brands choosing NICL for contract manufacturing of their products in the toilet soap, aerosols, personal care liquids and home care segments.
The company is powered by a captive 20 MW power plant which is powered by biomass and coal. NICL recently acquired a plant in Hub from P&G for the toll manufacturing of soap. With regard to this, it was highlighted that the company could potentially acquire the bin Qasim plant of P&G where shampoo, detergents and pampers are made if the deal if the management feels it is a lucrative opportunity.
Additionally, management apprised that it plans to move one of its oleo chemicals plants from Sheikhapura to Hub to help cater to the southern market as well as take advantage of proximity to the sea for export opportunities.The company management highlighted that its gross margins are expected to recover as a low margin order was taken in the last 2 quarters which is not regular and going forward an improvement will be seen.
Moving forward the management was hopeful of introducing new products especially in the chlor alkali segment along with aims for expansion both into export markets and partnerships with companies in other countries for local manufacturing there.
Important Disclosures
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