Indus Motor is set to announce its 2QFY22 financial results on February 24,

Indus Motor company (INDU) is set to announce its 2QFY22 financial results on February 24, 2022 where we expect the company to post profits of Rs4,153mn (EPS: Rs52.8), up 41% YoY.

The increase in profit is attribute to 1) Higher volumetric sales by 35% YoY 2) Higher prices and 3) Higher other income. This will take 1HFY22 profits to Rs9,578mn translating into an EPS of Rs122, up 99% YoY.

Alongside result, the company is expected to announced interim cash dividend of Rs26/share, taking cumulative cash dividend to Rs61/share in 1HFY22

On sequential basis, profits are expected to decrease in 2QFY22 due to decline in gross margins led by 1) Increase in raw material prices 2) PKR devaluation and 3) Increased Freight cost

Whereas, revenues of the company are expected to increased by 4% QoQ in 2QFY22, owing to volumetric increase of 4% QoQ and Increase car prices.

Gross Margins are expected to decline by 0.9ppts YoY and 3.5ppts QoQ to 7.3% in 2QFY22 due to above explained factors.

Other Income is expected to increased significantly by 71% YoY and 14% QoQ to Rs2,341mn in 2QFY22 due to higher cash led by strong order book and higher interest rates.

Courtesy – AHCML Research

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