Indus Motor Company , the second largest carmaker in Pakistan – has achieved a net profit of Rs 13 billion for the year ended June 2017, in this fiscal year as compared with Rs 11.45 billion in the same period of last year, according to a company notice sent to the Pakistan Stock Exchange (PSX).
Earnings per share increased to Rs165.41 for the fiscal year ended June 2017 compared with Rs 145.74 in the same period.
In the PSX, the share price of Indus Motor went down -2.44% to close at Rs 1700.79 on Thursday. The benchmark KSE 100-share Index ended at 42,268.62 points, down to 642.17 points or 1.50%.
The sales of the company contracted to 4 % YoY in the outgoing quarter. The revenues stood up which in which high priced variants contributed towards the sales.
The company sold a total of 14,167 units during April-June 2017 period which is down by 16% YoY. Amid declining volumes, average revenue per car grew by 12% YoY due to increased sales of higher priced variant Fortunner. Whole sales were up by 224%.
Gross profits dropped by 5% YoY while gross margins decreased to 12 bps YoY to 16.5 % in the outgoing quarter. Lower effective taxation let to higher profits in outgoing quarter.
During the fiscal year 2017, gross margins of the company improved by 190bps YoY to 17.7%.
“The results of Indus Motors were in line with market expectations” Topline Securities commented in its report.