The board meeting of Indus Motor Company Limited (INDU) is scheduled on 25th Feb’21, to announce the financial result for 2QFY21.

The experts expect profitability during 1HFY21 to increase significantly by 94% YoY to PKR 4,460mn (EPS: PKR 56.75) against PKR 2,304mn (EPS: PKR 9.32) in SPLY. Topline is expected to increase by 85% YoY to PKR 79bn attributable to volumetric growth of 84% YoY to 26,139 units (Yaris 12,845 units, Corolla 8,427 units, Fortuner 1,247 units, Hilux 3,620 units) vs. 14,175 units (Corolla 11,742 units, Fortuner 552 units, Hilux 1,881 units) in 1HFY20.

During 2QFY21, bottom-line to increase by 165% YoY and 42% QoQ to PKR 2,615mn (EPS: PKR 33.27) due to massive volumetric growth of 93% YoY and 23% QoQ to 14,424 units in 2QFY21 together with 120% YoY increase in other income on account of surge in short term investment. We project gross margins of the company to increase by 80bps QoQ to 7.50% amid change in sales mix and PKR appreciation that wiped off the impact of higher steel prices. Along with this, market expects the company to announce a dividend of PKR 20.00/share.

Source: Company Financials, AHL Research