Experts estimate Indus Motor to post PAT of PKR4,762mn (EPS: PKR60.59) compared to PKR PKR1,846mn (EPS: PKR 23.48) in the corresponding period last year, depicting the massive increase of 1.58x YoY owing to an increase in sales volume by 33%YoY, the last year sales volume was depressed due to covid-19 pandemic.
The cash dividend of PKR40/share is also expected in 1QFY22.
The rise in sales volume along with price escalation and lower auto financing rates supported the bottom line. However, the semiconductor chip shortage, increase in raw material prices mainly steel, rubber, plastic, higher freight cost, and PKR depreciation against USD remain the major challenges for the company which is expected to keep the automotive industry cost at the higher side and hit profitability.
Courtesy – Spectrum Research