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INDU: Price hike fails to avert impact of PKR devaluation as gross margins fall by 13%

April 26, 2019 (MLN): Indus Motors Company Limited (INDU) has stated Profit after Tax of Rs. 10.2 billion (EPS: Rs. 130.5) for the nine months period ended on March 31, 2019, showing a decline of 11.85% as against PAT of Rs. 11.6 billion reported in the same period last year.

The net sales of the company increased by 18% owing to higher selling prices and increase in volumetric sales. However, the cost of sales increased by 24.7% due to PKR devaluation, which resulted in gross profit margins declining by 13%.

This shows that in spite of increase in prices of almost all variants, the company was still not able to completely pass on the impact of devaluation on consumers.

The company also announced an Interim Cash Dividend for the quarter ended March 31, 2019 at Rs. 30 per share i.e. 300%. This is in addition to the combined Interim Cash Dividend of 57.50 per share i.e. 575% already paid.

Financial results for the nine months ended March 31 2019 (Rupees'000 )

 

Mar-19

Mar-18

% Change

Net sales

117,979,946

99,826,906

18.18%

Cost of sales

-103,055,837

-82,608,979

24.75%

Gross profit

14,924,109

17,217,927

-13.32%

Distribution expenses

-997,619

-910,144

9.61%

Administrative expenses

-1,001,001

-1,070,088

-6.46%

Other operating expenses

-121,328

-73,569

64.92%

Workers' Profit Participation Fund and Workers' Welfare Fund

-1,098,479

-1,228,333

-10.57%

Other income

3,156,639

2,679,012

17.83%

Finance cost

-40,815

-41,209

-0.96%

Profit before taxation

14,821,506

16,573,596

-10.57%

Taxation

-4,564,297

-4,937,706

-7.56%

Profit after taxation

10,257,209

11,635,890

-11.85%

Earnings per share – basic and diluted (Rupees)

130.50

148.04

-11.85%

 

Copyright Mettis Link News

Posted on: 2019-04-26T14:36:00+05:00

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