February 25, 2022 (MLN): Indus Motor Company Limited (INDU) managed to hold its growing momentum as the company kicked off the fiscal year 2022 by making splendid profits. During the 1HFY22, the bottom line of the company expanded by around 2x to stand at Rs10.17 billion, against Rs4.8bn in 1HFY21, the company filing on PSX showed today.
The massive profits are also reflected in the earnings per share as per which, the earning per share during the review period reached Rs129.45, compared to Rs61.08 in the same period last year (SPLY).
In conjunction with the results, the company also announced a cash dividend of Rs30 per share i.e. 300%. This is in addition to the first interim cash dividend of Rs34.5 per share i.e. 345% already paid.
The upsurge in INDU’s profitability was mainly attributable to higher sales volumes and an increase in other income, due to the improved cash fund position of the company.
Going by the financial statement, the sales volume of the company jumped by around 70% YoY to clock in at Rs135.18bn.
Similarly, the cost of sales also went up by 67% YoY to stand at Rs122.85n in 1HFY22 on the back of increasing commodity prices for steel, plastic, etc in the international market. In addition, the continuous depreciation of PKR against the USD also hit the cost of sales during the period.
However, the volumetric sales have omitted the impact of higher cost as the gross margin of the company improved to 9.13% YoY in 1HFY22 from 7.55% YoY in 1HFY21.
On the expense side, INDU’s distribution expenses ballooned by 53% YoY on account of higher sales. Meanwhile, the admin cost jumped by 44% during the period under review.
Among other line items, the other income of the company increased notably by 85% YoY from Rs2.45bn to Rs4.5bn, amidst an increase in cash balance owing to higher sales and short-term investments. The effective tax rate has improved to 27.97% as compared to 29.29% in 1HFY21.
|
Financial results for the half year ended December 31, 2021 ('000 Rupees) |
|||
|---|---|---|---|
|
|
Dec-21 |
Dec-20 |
% Change |
|
Net sales |
135,184,599 |
79,645,782 |
69.73% |
|
Cost of sales |
(122,848,203) |
(73,634,538) |
66.84% |
|
Gross profit |
12,336,396 |
6,011,244 |
105.22% |
|
Distribution expenses |
(874,021) |
(571,726) |
52.87% |
|
Administrative expenses |
(929,211) |
(645,115) |
44.04% |
|
Other operating expenses |
(71,089) |
(10,540) |
574.47% |
|
Workers' profit participation and workers' welfare fund |
(825,779) |
(391,468) |
110.94% |
|
Other income |
4,549,132 |
2,456,506 |
85.19% |
|
Finance cost |
(58,713) |
(58,285) |
0.73% |
|
Profit before taxation |
14,126,715 |
6,790,616 |
108.03% |
|
Taxation |
(3,952,023) |
(1,989,510) |
98.64% |
|
Profit after taxation |
10,174,692 |
4,801,106 |
111.92% |
|
Earnings per share – basic and diluted (Rupees) |
129.45 |
61.08 |
111.94% |
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