February 19, 2020 (MLN): Indus Motor Company Limited (INDU) has declared earnings of Rs. 2.3 billion (EPS: Rs. 29.32) for the six months ended December 31, 2019, showing a decline of 66.6% as compared to same period of previous year.
The company also announced an Interim Cash Dividend for the quarter ended December 31, 2019, at Rs. 6 per share i.e. 60%. This is in addition to First Interim Cash Dividend already paid at Rs. 7 per share i.e. 70%.
The fall in profits was a clear outcome of decline in top-line earnings by 44%, which in turn resulted from lower volumetric sales. Despite a fall in the cost of sales and higher vehicle prices, the company’s gross earnings fell by 62.5% on the back of limited power of company to pass on the impact of rising input costs on to consumers.
An increase in capital expenditure, combined with lower S.T Investment further shook the financial position as it resulted in a approx. 42% fall in non-core income.
Financial results for the half year ended December 31, 2019 ('000 Rupees) | |||
|---|---|---|---|
Dec-19 | Dec-18 | % Change | |
Net sales | 42,775,279 | 76,446,801 | -44.05% |
Cost of sales | (39,008,106) | (66,389,473) | -41.24% |
Gross profit | 3,767,173 | 10,057,328 | -62.54% |
Distribution expenses | (737,681) | (662,583) | 11.33% |
Administrative expenses | (691,006) | (596,784) | 15.79% |
Other operating expenses | (95,834) | (77,853) | 23.10% |
Workers' Profit Participation Fund and Workers' Welfare Fund | (236,779) | (751,523) | -68.49% |
Other income | 1,226,920 | 2,098,084 | -41.52% |
Finance cost | (37,984) | (27,884) | 36.22% |
Profit before taxation | 3,194,809 | 10,038,785 | -68.18% |
Taxation | (890,320) | (3,126,720) | -71.53% |
Profit after taxation | 2,304,489 | 6,912,065 | -66.66% |
Earnings per share – basic and diluted (Rupees) | 29.32 | 87.94 | -66.66% |
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