⚡ Flash Summary

Nishat Power Limited’s annual report for the year ended June 30, 2025, reveals a challenging year marked by a significant decline in turnover and a reported loss. The company’s turnover decreased by 69% due to lower capacity utilization and tariff reductions resulting from negotiations with the Power Purchaser and the Government of Pakistan. While other income increased due to full payment from the Power Purchaser, a one-time adjustment related to prior year earnings resulted in a loss per share of Rs. 2.11. Excluding this adjustment, EPS would have been Rs. 8.77, showcasing underlying operational strength.

📌 Key Takeaways

• 📉 Turnover declined by 69% to Rs 7,058 million in 2025 vs Rs 22,505 million in 2024 due to lower capacity utilization.
• 😭 The Company reported a loss per share of Rs 2.11 due to a one-time adjustment.
• 💪 Excluding the non-recurring adjustment, earnings per share would have been Rs 8.77.
• ✅ The Power Purchaser settled past dues as of October 31, 2024, on March 27, 2025.
• 🧾 Receivables from the Power Purchaser stood at Rs 2,002 million on June 30, 2025, down from Rs 15,319 million in 2024.
• ⚠️ Overdue receivables were reduced to Rs 1,508 million, a decrease from Rs 9,984 million in 2024.
• ⚡️ The plant dispatched 87 GWh of electricity, a decrease from 454 GWh in 2024.
• 🏭 Average capacity factor was 5.07%, a decrease from 26.45% in 2024.
• 📑 The Company created an overhauling reserve of Rs 3,722 million from retained earnings.
• ☀️ Rapid solarization is steadily reducing reliance on the national grid.
• EV The Board has approved a substantial investment in NexGen, an Electric Vehicle (EV) manufacturer.
• 🤝 The company agreed to waive delayed payment mark-up invoices and delayed payment mark-up accrued with respect to payments that have been made by the Power Purchaser upto 31 October 2024
• 📊 Investment were made to long term investment upto Rupees 2 billion and loan advance of Rupees 500 million to date.

🎯 Investment Thesis

Based on the analysis, a HOLD rating is appropriate for Nishat Power Limited. While the company has shown some promise with adjustments and agreements, the current financial standing is poor.