Indus Motor Company Limited (INDU) is scheduled to announce its FY24 financial result soon, where we expect the company to post a profit after tax of PKR 14.6bn (EPS: PKR 185.4), up by 51% YoY, compared to PKR 9.7bn (EPS: PKR 123.0). Gross margins in FY24 are expected to recover substantially recording at 12.96% compared to 4.46% in FY23, mainly due to i) Stable currency, ii) Removal of import restrictions, iii) Launch of corolla cross enjoying lower custom duties and GST on hybrid vehicles.

Meanwhile, during the last quarter, the company is expected to post sales of PKR 53.8bn, up by 26% YoY on the back of higher volumetric sales (+28% YoY). With this the bottom line of 4QFY24 is expected to arrive at PKR 5.2bn (EPS: PKR 65.7), up by 35% YoY. Alongside the result, we expect the company to announce a final cash dividend of PKR 39.4/share (PKR 111.2/share in FY24).

Courtesy – AHL Research