INDU- Driving growth

August 27, 2021 (MLN): Indus Motor Company Limited (INDU) has unveiled its financial results for the year ended June 30, 2021, whereby the company has made net profits of Rs12.83 billion, showing an extraordinary growth of 2.5x YoY when compared to net profits of Rs5.08bn reported in the same period last year (SPLY).

This has translated into earnings per share (EPS) of Rs163.21 which significantly increased by 2.5 times YoY against EPS of Rs64.66.

This robust growth may be attributable to volumetric sales growth due to lower interest rate, revival of economic activity post-lockdown and improved gross margins amid PKR appreciation against USD.

During the period under review, the topline witnessed a two-fold increase to Rs179bn owing to volumetric growth of 102% YoY to 57,236 units against 28,378 units in FY20. Resultantly, the gross profit of the company surged to Rs16.65bn, up by 2.23x YoY, expanding gross margins from 8.65% to 9.30%.

The company posted a 74% YoY rise in other income mainly on the higher dividends from AUMs, higher interest income from PIBs, capital gain on T-bills in the midst of low yields along with the interest on TDRs, a research note by Shajar Securities highlighted.

Along with the financial results, the company announced a final cash dividend of Rs36.50 per share, bringing the full year cash dividend to Rs103.50 per share.

Financial results for the year ended June 30th 2021 ('000 Rupees)

 

Jun-21

Jun-20

% Change

Revenue from contracts with customers

 179,161,727

 86,167,016

107.92%

Cost of sales

 (162,508,017)

 (78,716,157)

106.45%

Gross profit

 16,653,710

 7,450,859

123.51%

Distribution expenses

 (1,618,863)

 (1,468,603)

10.23%

Administrative expenses

 (1,464,888)

 (1,385,099)

5.76%

Other operating expenses

 (76,342)

 (196,999)

-61.25%

Workers' Profit Participation Fund and Workers' Welfare Fund

 (740,193)

 (231,934)

219.14%

Other income

 5,579,339

 3,204,872

74.09%

Finance cost

 (133,570)

 (85,737)

55.79%

Profit before taxation

 18,199,193

 7,287,359

149.74%

Taxation

 (5,370,601)

 (2,205,332)

143.53%

Profit after taxation

 12,828,592

 5,082,027

152.43%

Earnings per share – basic and diluted (Rupees)

 163.21

 64.66

152.41%

Financial results for the year ended June 30th 2021 ('000 Rupees)

 

 

 

 

Jun-21

Jun-20

% Change

Revenue from contracts with customers

 179,161,727

 86,167,016

107.92%

Cost of sales

 (162,508,017)

 (78,716,157)

106.45%

Gross profit

 16,653,710

 7,450,859

123.51%

Distribution expenses

 (1,618,863)

 (1,468,603)

10.23%

Administrative expenses

 (1,464,888)

 (1,385,099)

5.76%

Other operating expenses

 (76,342)

 (196,999)

-61.25%

Workers' Profit Participation Fund and Workers' Welfare Fund

 (740,193)

 (231,934)

219.14%

Other income

 5,579,339

 3,204,872

74.09%

Finance cost

 (133,570)

 (85,737)

55.79%

Profit before taxation

 18,199,193

 7,287,359

149.74%

Taxation

 (5,370,601)

 (2,205,332)

143.53%

Profit after taxation

 12,828,592

 5,082,027

152.43%

Earnings per share – basic and diluted (Rupees)

 163.21

 64.66

152.41%

 

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Posted on: 2021-08-27T11:12:00+05:00

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