LAHORE: Indus Motor Company Ltd has posted 38 per cent increases in its profits and announced Rs8.8 billion earnings for the first nine months of current fiscal year.
The company also tagged third interim cash dividend of Rs20/share. The result is in line with expectations.
In 9MFY16, sales figures of Indus Motors improved by 17 percent to Rs79.7 billion on account of 19 percent accelerated car sales to 48.1k units.
These inflated sales can be attributed 20 percent healthy sales of Corolla to 43.3k units. Additionally, gross margins also tweaked by 2.1pps to 16.2 percent on account of drop in CRC steel price by 33.6 percent along with JPY/PKR depreciation of 3 percent. However, other operating expenses rose by 37 percent. Resultantly, net earnings improved by 38 percent to PKR 8.8bn (EPS PKR 112.6).
During 3QFY16, revenues of Indus Motors jumped up by 7 percent QoQ to Rs28.3bn, on the back of 8 percent uptick in unit sales to 17.3k. Furthermore, gross margins descended by 36bps to 15.7 percent, likely on the back of 10 percent rise in steel prices and 6 percent QoQ sharp JPY/PKR appreciation. Resultantly, earnings have remained stable at Rs37.56/share.
