INDU: Profit nosedives to Rs1.3bn in 1QFY23

October 27, 2022 (MLN): Automaker, Indus Motors Company Limited (INDU) on Thursday reported net profits of Rs1.3 billion [EPS: Rs16.5] during 1QFY23, down by 76% YoY against Rs5.42bn [EPS: Rs69.02] net profits in the same period last year (SPLY).

The drop in profitability is mainly due to intermittent plant closures, phased price increases, and, PKR depreciation.

Despite the notable decline in profitability, the board of directors has announced an interim cash dividend for the quarter at Rs8.20 per share i.e., 82%.

During the period under review, the top line witnessed a 43% YoY contraction to Rs37.2bn while the cost of sales decline by 32.27% YoY to Rs39.6bn that led the company to face gross loss of Rs2.3bn in 1QFY23 compared to the gross profit of Rs7bn in SPLY.

On the expense side, INDU’s distribution and administrative expenses clocked in at Rs372 million and Rs450mn, respectively.

Notably, the company posted a 2.5x YoY rise in other income to stand at Rs5.16bn amidst an increase in cash balance owing to higher sales and short-term investments.

On the tax front, the company paid Rs542mn in terms of taxation in 1QFY23, compared to Rs2.26bn in SPLY.

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