Indus Motor Company, the manufacturer of Toyota Corolla, has posted a net profit of Rs 3.73 billion in the second quarter that ended on December 31, 2017, an increase of 23.51% compared with Rs 3.02 billion in the same period of the previous year, according to a company notice sent to the Pakistan Stock Exchange (PSX).
Earnings per share (EPS) increased to Rs 47.53 compared with Rs 38.51 in the period under review.
An interim cash dividend of Rs 32.5 per share was announced. This is in addition to the first interim cash dividend already paid at Rs 30.00 per share.
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The result was higher than the market expectations. Cumulatively, its net profit in the first six months of fiscal year 2017-18 touched Rs 7.36 billion which is up by 21.25 compared with Rs 6.07 billion in the same period of the previous year.
The company’s sales turnover increased to Rs 32.09 billion, up by 25.16% year-on-year (YoY) in the outgoing quarter.
While the shift in product mix towards higher-priced models further augmented the company’s top line. Gross margins during the quarter were also above expectations, which is likely due to higher Fortuner sales, and 3% YoY depreciation in JPY against US$.
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Fortuner sales showed a massive hike of 1310% as 846 units were sold during this quarter as compared to just 60 units in the previous year.
Indus Motors sold 12,560 units of Toyota Corolla during the quarter, down by 4.22% as compared to the corresponding previous year.
In the second quarter, distribution costs saw a decrease of 6.9% YoY and administrative expense grew by 75.65%.
At the time of filing this report, INDU’s share at the PSX was trading at Rs 1700, down by -0.28% with a turnover of 5580 shares.
Massive Growth