Nishat Mills Limited (NML), the flagship company of the Nishat Group, has announced several strategic decisions, including the disposal of its entire equity in Nishat Hospitality and the establishment of new operations in Türkiye and Bangladesh. These developments were disclosed in a notice to the Pakistan Stock Exchange (PSX) on Friday, alongside the company’s financial results for the fiscal year 2023-24.

The board of directors has approved the creation of a wholly-owned subsidiary in the Republic of Türkiye, pending regulatory approvals and compliance with local laws. Additionally, NML plans to set up a liaison office in Bangladesh, also subject to regulatory compliance.

In a significant move, the board has decided to divest 100% of its equity in Nishat Hospitality (Private) Limited, a wholly-owned subsidiary. This decision awaits shareholder approval.

Previously, NML’s board had approved the establishment of a private limited company in the United Kingdom.

Financially, NML reported a profit of Rs10.5 billion for FY24. However, the company’s profit after tax declined due to increased costs of sales and finance compared to the previous year. Consequently, Earnings Per Share (EPS) fell to Rs22.38 in FY24 from Rs32.12 in FY23. The company declared a cash dividend of Rs3 per share, equivalent to 30% for FY24.

NML attributed the financial challenges to high energy costs, expensive financing, and unprecedented government taxation, which have increased the cost of doing business and impacted the textile industry’s performance and future outlook.