Indus Motor profit jumps 48% in second quarter

September 02, 2024 (MLN): Indus Motor Company Limited (PSX: INDU) recorded an increase of 48.3% in its profitability in the second quarter of 2024, earning profit after tax of Rs5.67 billion [EPS: Rs72.09] compared to a profit of Rs3.82bn [EPS: Rs48.61] in the same period last year (SPLY).

Along with the results, the company announced a final cash dividend for the year ending June 2024 of Rs43 per share i.e. 430%. This is in addition to the combined interim dividend already paid at Rs71.7 per share.

Going by the unconsolidated results, the company's sales rose 27.1% to Rs54.25bn as compared to Rs42.68bn in SPLY.

However, the cost of sales also rose by 33.2%, worsening the gross profit slightly by 0.4% to Rs7.71bn in Q2 2024.

The gross margins fell to 14.2% as compared to 18.1% in SPLY.

During the period under review, other income increased by 67.7% to stand at Rs4.24bn in Q2 2024 as compared to Rs2.53bn in SPLY.

On the expense side, the company's administrative expenses rose 36.3% YoY to Rs928.87m, selling and distribution expenses rose 280.4% YoY to Rs1.98bn, and other operating expenses rose 297.6% YoY to Rs590.91m.

The company’s finance cost surged by 153.2% and stood at Rs78.97m as compared to Rs31.19m in SPLY, mainly due to higher interest rates.

On the tax front, the company paid a lower tax worth Rs2.7bn against the Rs4.38bn paid in the corresponding period of last year, depicting a fall of 38.3%.

Amount in thousand except for EPS

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