Earning Review: Indus Motors outperforms market expectations

MG News | August 27, 2019 at 02:17 PM GMT+05:00

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August 27, 2019 (MLN): Despite rise in net sales owing to rise in sales units of Corolla segment, Indus Motors Limited’s profits declined 13% to Rs 13.7 billion for the year ended on June 30^th 2019. The Earnings per share (EPS) dropped from Rs 200.6 to Rs 174.5.

The financial results announced by the company today were also accompanied with an interim cash dividend of Rs 27.5 per share i.e. 275%. This is in addition to the combined interim cash dividend of 875% i.e. Rs 87.50 per share paid already.

Moreover, due to rise in cost of production amid PKR depreciation, the company’s gross profits dropped by 19.65% to Rs 19 billion.

In a rising interest rate regime, company’s other Income rose by 10% YoY, on the back of higher returns on bank deposits, T-Bills, PIBs etc.

It is pertinent to mention that despite experiencing a decline in profitability, the company still managed to outperform the market expectations.

Financial results for the year ended June 30th 2019 ('000 Rupees)
	Jun-19	Jun-18	% Change
Net sales	157,996,212	139,715,429	13.08%
Cost of sales	138,804,538	115,830,771	19.83%
Gross profit	19,191,674	23,884,658	-19.65%
Distribution expenses	1,403,611	1,283,889	9.32%
Administrative expenses	1,410,033	1,523,800	-7.47%
Other operating expenses	234,977	193,620	21.36%
Workers' Profit Participation Fund and Workers' Welfare Fund	1,406,379	1,704,557	-17.49%
Other income	4,306,662	3,900,685	10.41%
Finance cost	67,407	80,311	-16.07%
Profit before taxation	18,975,929	22,999,166	-17.49%
Taxation	5,260,954	7,227,306	-27.21%
Profit after taxation	13,714,975	15,771,860	-13.04%
Earnings per share - basic and diluted (Rupees)	174.49	200.60	-13.02%

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