Indus Motor posts Rs10.17 earnings in the first half of FY22

Indus Motor posts Rs10.17 earnings in the first half of FY22

Indus Motor posts Rs10.17 earnings in the first half of FY22
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KARACHI: Indus Motor Company Limited (INDU) earnings recorded a growth of 111 per cent to Rs10.17 billion translating into the earnings per share (EPS) of Rs129.45 during the first half of fiscal year 2022.

The company recorded a profit of Rs4.80 billion (EPS: Rs61.08) during the same period last year.

During the second quarter of fiscal year 2022, profitability soared 61 per cent to 4.75 billion (EPS: Rs60.43) compared with Rs2.95 billion (EPS: Rs37.60) during the same period last year. The noticeable jump in profitability is an outcome of high demand in anticipation of a price hike.

Alongside the financial result, INDU declared an interim cash dividend of Rs30/share taking the total payout to Rs64.50/share in the first half of fiscal year 2022.

During the second quarter of fiscal year 2022, the net sales of the company surged by 53 per cent on a year-on-year basis to Rs69.6 billion, owing to an impressive jump in volumetric sales to 19,426 units, up 35 per cent year-on-year amid high demand in the month of December 21 due to consumers’ anticipation of a price hike, coupled with upward revision in prices of 3 per cent on a year-on-year basis.

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Major contributors remained Fortuner (up 135 per cent year-on-year), whose facelift was recently rolled out; along with the popular sedan Corolla (up 93 per cent year-on-year).

This contributed an increase of 69 per cent to Rs135.2 billion in the revenue during the first half of fiscal year 2022 from Rs79.6 billion during the same period last year given aforementioned reasons.

“The margins of the company during the quarter witnessed a slight dip to 7.56 per cent, compared with 8.19 per cent during the same period last year, as cost pressures emanating from rupee depreciation and high steel prices offset the impact of a robust jump in the topline,” an analyst at Arif Habib Limited said.

On a quarterly basis, the gross margins came down by 323bps to 7.56 per cent, as an outcome of increased cost pressure due to rupee depreciation, high price of raw material together with inflated freight charges.

During the second quarter of fiscal year 2022, other income stood at Rs2.502 billion, up by 81 per cent on a year-on-year basis and 22 per cent on a quarter-on-quarter basis due to higher interest income on short term investments and cash balance.

The INDU booked effective taxation at 26.29 per cent during the second quarter of fiscal year 2022, as compared with 28.69 per cent during the same period last year.

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