INDU announced earnings (PAT) today for 1QFY25 at PKR 5.1bn (EPS: PKR 64.77), depicting an increase of 58% YoY (1QFY24 EPS: PKR 40.91). The company also announced a cash dividend of PKR 39.0/share.
Result Highlights
- Net sales during 1QFY25 clocked in at PKR 41.6bn in contrast to PKR 32.6bn in SPLY, depicting an increase of 27% YoY, driven by higher volumetric sales; 6,160 units in 1QFY25 compared to 4,511 units in SPLY. On a sequential basis, the revenue declined by 23% QoQ, due to lower volumetric sales (4QFY24: 7,069 units) amid plant shutdown of ~16 days during the quarter.
- Gross margins for 1QFY25 were 13.4%, up from 10.1% YoY, primarily due to stable PKR-USD parity and better margins on the Corolla Cross. On a sequential basis, gross margins saw a slight decline due to a shift in the sales mix, with more sedan models like the Corolla and Yaris being sold compared to the Corolla Cross during the quarter.
- Other income increased by 58% YoY to clock in at PKR 4.5bn in 1QFY25, owing to higher cash and cash equivalents and short-term investments.
- Finance costs increased by 98% year over year to PKR 62mn in 1QFY25, primarily due to an increase in short-term borrowings.
- The company booked effective taxation at 39% in 1QFY25 vis-à-vis 35% in SPLY.
Courtesy – AHL Research