Indus Motor Company Ltd. (PSX: INDU) has announced its 1QFY24 result today, wherein the company has posted profitability of Rs. 3.2 billion, up 148 percent year-on-year (YoY) but declining by 16 percent QoQ.
Along with the result, the company has also announced an interim cash dividend of Rs. 24.5 per share. The result is above industry estimates. According to Ismail Iqbal Securities, the basis of deviation is attributed to higher than estimated revenue.
In 1QFY24, the topline of the company has arrived at Rs. 32.7 billion, declining by 12 percent YoY and 23 percent QoQ primarily as a result of an 18 percent QoQ drop in car sales volumes during the quarter.
Gross margin has clocked in at 10.1 percent, down 8 percentage points primarily due to the absence of inventory gains and year-end adjustments recorded in the last quarter. Albeit margins are still higher than the 3-year quarterly average of 9.4 percent.
Other income has decreased by 45 percent YoY to Rs. 2.8 billion but is up 12 percent QoQ amid a 20 percent rise in cash and cash equivalents held by the company in the last quarter.
Lastly, the effective tax rate has clocked in at 35 percent.
According to the automaker’s financial results, the company posted earnings of Rs. 40.9 per share as compared to EPS of Rs. 16.5 per share last year.
At the time of filing, INDU’s scrip at the bourse was Rs. 955, up by Rs. 5 or 0.53 percent with a turnover of 616 shares on Friday.
