Indus Motor profit jumps 58% in Q1

October 28, 2024 (MLN): Indus Motor Company Limited (PSX: INDU) reported a profit of Rs5.09 billion for the July-September quarter, an increase of 58.3% when compared with earnings of Rs3.22 billion in the same period of the previous year.

That translates to an earnings per share of Rs64.77 as against Rs40.91 in SPLY.

Along with the results, the company announced its first interim cash dividend for the quarter ended September 30, 2024 at Rs39 per share i.e. 390%.

The company's revenue went up by 27.3% to Rs41.6bn as compared to Rs32.67bn in SPLY.

The cost of sales also rose by 22.7% but was lesser than proportionate to sales rise, which improved the gross profit by 69.1% to Rs5.58bn in Q1 FY25.

The gross margins rose to 13.4% as compared to 10.1% in SPLY.

During the period under review, other income went up by 58.0% to stand at Rs4.46bn in Q1 FY25 as compared to Rs2.82bn in SPLY.

On the expense side, the company's administrative expenses rose 9.2% from a year ago to Rs584.79m, selling and distribution expenses rose 72.9% to Rs662.52m, and other operating expenses rose 83.9% to Rs451.28m.

The company’s finance cost inflated by 98.5% and stood at Rs61.77m as compared to Rs31.12m in SPLY, mainly due to higher interest rates.

On the tax front, the company paid a higher tax worth Rs3.18bn against an expense paid worth Rs1.71bn in the corresponding period of last year, a rise of 86.2%.

This translates to an effective tax rate of 38.5% as compared to 34.7% in SPLY.

Amount in thousand except for EPS

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