INDU: 9MFY21 Profitability to grow by 69% YoY

Indus Motor Company Limited (INDU) is scheduled to announce its 3QFY21 financial result on April 28th, ’21. We expect the profitability to increase by 69% YoY to PKR 8,414mn (EPS: PKR 107.04) in 9MFY21 against PKR 4,984mn (EPS: PKR 63.41). Topline is expected to witness an increase of 73% YoY to PKR 131bn attributable to volumetric growth of 69% YoY to 42,670 units vs. 25,300 units in 9MFY20.

On a quarterly basis, we project the company to post earnings of PKR 3,612mn (EPS: PKR 45.96), depicting a growth of 35% YoY and 22% QoQ. Topline is expected to increase by 56% YoY owing to growth in sales volumes by 49% YoY to 16,531 vis-à-vis 11,125 units in SPLY.

Despite currency appreciation, we expect margins to deteriorate by 296bps YoY to 9.17% due to surge in prices of raw materials and higher freight costs. Along with this, we expect the company to announce a dividend of PKR 30.00/share vs PKR 10.00/share in SPLY.

Courtesy – AHL Research

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