Indus Motor announces cash dividend of Rs36.5/share
KARACHI: The Indus Motor Company has declared a final cash dividend of Rs36.5/share for the year ended June 30, 2021, which is in addition to the interim dividend of Rs67/share already paid to the shareholders.
Indus Motor posted a net profit of Rs12.82 billion, translating into the earnings per share (EPS) of Rs163.21 for FY21, up 152.3 per cent, compared with the profit of Rs5.08 billion (EPS: Rs64.66) in FY20.
“The deviance was noted on account of better-than-expected margins. We cite currency appreciation and rationalisation of freight rates as major influencers for the margins,” an analyst at Khadim Ali Shah Bukhari (KASB) Securities said.
The revenues increased 108 per cent to Rs179.16 billion during the year under review, compared with Rs86.16 billion in the previous year.
“The surge in revenues is attributable to volumetric growth of 102 per cent to 57,236 units (Yaris 28,295 units, Corolla 18,355 units, Fortuner 3,543 units, Hilux 7,043 units) versus 28,378 units (Corolla 22,140 units, Yaris 1,327 units, Fortuner 1,163 units, Hilux 3,748 units) in FY20.
The revenue during the fourth quarter of FY21 increased 364 per cent to Rs48 billion. This is primarily owing to a surge in the sale of cars by 373 per cent during the fourth quarter of FY21,” an analyst at Arif Habib Limited said.
Other income increased 94 per cent to Rs1.686 million on account of significant jump in the short-term investment (government securities), and cash and bank balance.
Indus Motor’s outperformance is expected to instil confidence on the company’s financial outlook, expediting its re-rating. In the near-term first quarter of FY22 is likely to be influenced by deteriorating dollar-rupee parity. Sequentially, the rupee parity is likely to witness an average depreciation of 5 per cent. In this respect, the market is confident that the car prices are set to increase.
“After reporting earnings of 4QFY21 at Rs56/share, its best quarter so far, we anticipate FY22 to depict similar trends. We see FY22 earnings at Rs210/share as the company targets production growth of 18 per cent. We think [the] market is likely to put weight behind this going ahead,” the KASB analyst added.
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