INDU’s half-year profits slip by 6.14 percent

February 25, 2019 (MLN): Indus Motor Company Limited has declared profits of Rs. 6.9 billion (EPS: 87.94) for the half year ended December 31, 2018, i.e. around 6.14% lower than the profits made in the same period last year.

The increase in company’s cost of sales surpassed the growth in sales revenue, leading to a negative change in Gross Profit margin.

Moreover, even a decline in major expense heads i.e. Finance cost and Taxation by 2.69% and 0.7% respectively, couldn’t provide a substantial impetus to the company’s financial position.

It is pertinent to mention that the above mentioned results are in line with market expectations, while the estimate closest to the actual earnings was put forward by BIPL Securities.  

The company also announced an Interim Cash Dividend for the quarter ended December 31, 2018 at Rs. 25 per share, i.e. 250%. This is in addition to Interim Cash Dividend already paid art Rs. 32.5 per share i.e. 325%.   

Profit and loss account for the six months ended December 31 2018 (Rupees'000)

 

Dec-18

Dec-17

% Change

Net turnover

76,446,801

63,074,535

21.20%

Cost of sales

-66,389,473

-52,185,265

27.22%

Gross profit

10,057,328

10,889,270

-7.64%

Administration expenses

-596,784

-683,425

-12.68%

Distribution expenses

-662,583

-581,452

13.95%

Other operating expenses

-77,853

-69,784

11.56%

Workers' profit participation fund

-751,523

-782,709

-3.98%

Other income

2,098,084

1,769,845

18.55%

Finance costs

-27,884

-28,654

-2.69%

Profit before taxation

10,038,785

10,513,091

-4.51%

Taxation

-3,126,720

-3,148,882

-0.70%

Profit after taxation

6,912,065

7,364,209

-6.14%

Basic and diluted earnings per share

87.94

93.69

-6.14%

 

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Posted on: 2019-02-25T12:00:00+05:00

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