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
