Volumetric growth on the back of Yaris lifts INDU’s profits to Rs 1.84 billion

October 28, 2020 (MLN): Major automaker Indus Motors (PSX: INDU)’s net profits for the quarter ended on September 30th, 2020 have surged by 40% YoY to Rs 1.84 billion as opposed to Rs 1.3 billion reported at the end of 1QFY20.

This translated into earnings per share which clocked in at Rs 23.48 against Rs 16.78 stood in the same quarter last year.

The increase in profitability was attributable to higher revenues and the other income during the quarter.

The sales revenue of the company jumped remarkably by 65% YoY to Rs 34 billion mainly due to 75% YoY volumetric growth on the back of Yaris (51% of volumes) to 11,715 units, compared to 6,707 units in 1QFY20. To note, company sold 6,009 units of Yaris, Corolla 3,614 units, Fortuner 390 units and Hilux 1,702 units during the quarter.

Despite rise in sales, the company’s gross margins plunged to 7% from 10%. According to the report by Shajar Capital, this was due to depreciation of USDPKR and JPYPKR respectively by 5.68% YoY and 6.76%YoY to Rs166.96/USD and Rs1.57/JPY in the international markets. On the contrary, CRC prices has plunged by 8% YoY in 1QFY21 to USD 519/MT in the international markets.

Moreover, the other income of the company witnessed an upsurge of 56.67% YoY to Ra 1 billion amid drastic surge in short term investments (PIBs and T-Bills).

On the tax front, the effective rate during the quarter was set at 30% in contrast to 26% in 1QFY20.

Alongside financial results, the company declared an interim cash dividend of Rs 12.00 per share for the quarter mentioned above compared to Rs 7.00 per share in 1QFY20.

Financial results for the Quarter September 30th, 2020 (‘000 Rupees)

Sep-20

Sep-19

% Change

Net sales

                          34,194,928

                 20,716,040

65.06%

Cost of sales

                        (31,906,778)

               (18,707,669)

70.55%

Gross profit

                             2,288,150

                    2,008,371

13.93%

Distribution expenses

                              (226,027)

                     (400,324)

-43.54%

Administrative expenses

                              (316,072)

                     (324,219)

-2.51%

Other operating expenses

                                   (8,655)

                       (48,028)

-81.98%

Workers’ Profit Participation Fund and Workers’ Welfare Fund

                              (146,112)

                     (131,867)

10.80%

Other income

                             1,088,536

                       694,782

56.67%

Finance cost

                                (34,092)

                       (19,466)

75.14%

Profit before taxation

                             2,645,728

                    1,779,249

48.70%

Taxation

                              (800,358)

                     (460,514)

73.80%

Profit after taxation

                             1,845,370

                    1,318,735

39.93%

Earnings per share – basic and diluted (Rupees)

                                     23.48

                            16.78

39.93%

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Posted on: 2020-10-28T14:30:00+05:00

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