Indus Motor’s profitability plummets by 63% YoY during FY20

August 10, 2020 (MLN): Indus Motor Company Limited (INDU) has unveiled its financial results for the FY20 ended June 30, 2020.  As per results, the company has posted net profits of Rs 5.082 billion(EPS: Rs 64.66), depicting the massive decrease of 63% YoY when compared to net profits of Rs 13.714 billion (EPS: Rs 174.49) in the same period last year. 

The massive decline in earnings seen in the financial results below is a result of stark rise in vehicle prices coupled with broader dampeners for consumer durable spending owing to lower economic activity stemming from COVID-19 pandemic which led to the lowest quarterly vehicles sales in history, the research of AKD revealed.

During the FY20, the top line witnessed a drop of 45.46% YoY to Rs 86.167 billion which was attributable to volumetric decline, shrinking gross margins from 12.15% to 8.65%.

The other major highlights include an increase in distribution expenses by 4.65% YoY and the decrease in other income from short term investments by 25.58% YoY, from Rs 4.306 billion to Rs 3.204 billion when compared to the prior year, as return compressed following monetary easing, AKD research mentioned.

Alongside financial results, the Board of Directors of the company announced a final cash dividend for the year ended June 30, 2020, at Rs 7 per share i.e. 70%. This is in addition to the combined interim dividend already paid at Rs 23 per share i.e. 230%

Copyright Mettis Link News