Earning Review: Indus Motors outperforms market expectations

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 30th 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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Posted on: 2019-08-27T14:17:00+05:00

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