August 28, 2023 (MLN): Indus Motor Company Limited (PSX: INDU) has revealed its financial statement today for the year ended June 30, 2023, as per which the company posted a profit after tax worth Rs9.66 billion [EPS: Rs122.96], depicting a significant decline of 38.84% YoY, compared to Rs15.80bn [EPS: Rs201.14] in the same period last year (SPLY), bank’s filing on PSX showed today.
Along with the FY23 financial results, the board of directors of INDU has also announced a final cash dividend for the period ended June 30, 2023, at Rs29 per share i.e. 290%.
This is in addition to the combined Interim cash dividend at Rs. 42.80 per share i.e. 428%, already paid. The total dividend for 2022-2023 will thus amount to 718% i.e. Rs. 71.80 per share.
To note, INDU has recently decided to completely shut down its plant until September 06, 2023, amid supply chain disruptions.
In the fiscal year 2022-2023, due to a challenging environment, low consumer purchasing power, and an increase in duties and taxes by the government, the demand for the auto sector faced a continuous decline.
Thereby, the decline in profitability can be attributed to the deteriorating economic conditions.
INDU and its vendors continued to face hurdles in importing raw materials and receiving clearance for their consignments from commercial banks.
Accordingly, the company had insufficient inventory levels and could not continue its production activities.
Going by the results, the company's top line fell by 35.50% YoY to Rs177.71bn as compared to Rs275.51bn in SPLY.
The cost of sales also fell by 33.96% YoY but was lower than proportionate to sales decline, which worsened the gross profit by 56.91% YoY to Rs7.93bn in FY24.
The company's other income section witnessed an increase of 9.61% to Rs14.18bn in FY23 as compared to Rs12.94bn in SPLY.
On the expense side, the company observed a fall in Distribution & marketing costs by 20.40% YoY and other expenses by 2.80x YoY to clock in at Rs1.69bn and Rs520.49m respectively during the review period.
The Workers' Profit Participation Fund and Workers' Welfare Fund fell by 45.33% YoY to stand at Rs680.15m in FY23 compared to Rs1.24bn in SPLY.
Conversely, the administrative expenses marked a rise of 2.82% to Rs2.28bn as compared to Rs2.22bn in FY23.
The company’s finance costs went up by 23.12% YoY and stood at Rs140.73m as compared to Rs114.3m in FY23, mainly due to higher interest rates.
On the tax front, the company paid a lower tax worth Rs7.13bn against the Rs9.65bn paid in the corresponding period of last year, depicting a decrease of 26.09% YoY.
| Unconsolidated Financial Results for Year ended June 30, 2023 | |||
|---|---|---|---|
| June 23 | June 22 | % Change | |
| Revenue from contracts with customers | 177,710,637 | 275,505,778 | -35.50% |
| Cost of sales | (169,779,467) | (257,101,297) | -33.96% |
| Gross Profit | 7,931,170 | 18,404,481 | -56.91% |
| Distribution & marketing cost | (1,690,768) | (2,124,200) | -20.40% |
| Administrative expenses | (2,281,220) | (2,218,655) | 2.82% |
| Other Income | 14,179,381 | 12,935,711 | 9.61% |
| Workers' Profit Participation Fund and Workers' Welfare Fund | (680,146) | (1,244,092) | -45.33% |
| Other expenses | (520,494) | (186,370) | 179.28% |
| Finance cost | (140,725) | (114,299) | 23.12% |
| Profit before taxation | 16,797,198 | 25,452,576 | -34.01% |
| Taxation | (7,132,769) | (9,650,728) | -26.09% |
| Net profit for the period | 9,664,429 | 15,801,848 | -38.84% |
| Basic and diluted earnings/ (loss) per share | 122.96 | 201.04 | – |
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Posted on: 2023-08-28T10:30:46+05:00
