Indus Motors Company Limited (INDU) announced its financial result for 9MFY24 today, posting a PAT of PKR 9,406mn (EPS: PKR 119.67), up by 61% YoY. During 3QFY24, the net profit of the company clocked in at PKR 4,449mn (EPS: PKR 56.61) compared to PKR 3,216mn (EPS: PKR 40.92) in 3QFY23, up by 38% YoY. Alongside the result, the company announced a cash dividend of PKR 34.00/share.

Result Highlights

Net sales during 9MFY24 clocked in at PKR 98,232mn in contrast to PKR 135,033mn in SPLY, depicting a decline of 27% YoY. On a quarterly basis, the topline witnessed a dip of 2% YoY. On a sequential basis, the revenue swelled up by 159% QoQ amid 2.4x QoQ increase in sales volumes, which is attributable to the new-year effect and launch of Corolla Cross.

During 9MFY24 gross margin arrived at 11.9%, in contrast to 0.15% during SPLY mainly due to a stable PKR USD parity and an increase in overall car prices. On a quarterly basis, the gross margins settled at 14.7% during 3QFY24 compared to 6.30% in SPLY, due to the aforementioned reason.

Distribution expense surged by 5.6x YoY settling at 2,503mn during 3QFY24, which is attributable to an upsurge in marketing and distribution expenses associated with the Corolla Cross.

Other income declined by 19% YoY to clock in at PKR 9,421mn in 9MFY24, which is mainly because of decrease in short-term investments. While, on quarterly basis, it increased by 35% YoY, due to higher income from cash and cash equivalent.

The company booked effective taxation at 42% in 3QFY24 vis-à-vis  34% in 3QFY23.

Courtesy – AHL Research