Indus Motor Company Limited (INDU) is scheduled to announce its 3QFY21 financial result on August 26th’21. We expect the profitability to increase by 135% YoY to PKR 11,932mn (EPS: PKR 151.80) in FY21 against PKR 5,082mn (EPS: PKR 64.66). Topline is expected to witness an increase of 106% YoY to PKR 131bn attributable to volumetric growth of 102% YoY to 57,236 units vs. 28,378 units in FY20. On a quarterly basis, we project the company to post earnings of PKR 3,516mn (EPS: PKR 44.74), depicting a growth of 36x YoY. Topline is expected to increase by 350% YoY owing to low base of sales volumes during 4QFY20. Despite surge in prices of raw materials and higher freight costs, we expect margins to increase by 68bps YoY to 9.89% due to appreciation of PKR against USD. Along with this, we expect the company to announce a dividend of PKR 33.00/share in 4QFY21, taking full year payout to PKR 100/share.

Courtesy – AHL Research