INDU profit down by 62% YoY
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KARACHI: Toyota car makers, Indus Motor Company Limited (INDU) Tuesday announced Profit After Tax (PAT) of Rs 1.3 billion in first quarter 2019-20 (earning per share (EPS) Rs 16.78, down 62 per cent YoY) on the back of lower sales coupled with depletion in Gross Profit margin.
Along with the result, company has also announced dividend of Rs 7.0/share for the first quarter.
Revenue has declined by 41 per cent YoY as company recorded sale of 6,707 units in July-September this year as compared to 15,419 units in last year. Volumetric sales are down by 57 per cent YoY due to higher car prices, new FED charges imposed in FY20 budget, higher interest rate for auto financing & economic slowdown.
Other Income has declined by 34 per cent YoY mainly due to lower short term investments which stands at Rs 23 billion as per latest balance sheet numbers compared to Rs 55 billion in first quarter 2018-19.
Admin & Distribution expense has increased by 12 per cent & 25 per cent YoY respectively due to inflationary pressure which kept bottom-line at lower level.
Effective tax rate for the quarter of the company clocked in at 26 per cent as compared to 17 per cent in the same period last year.
Key risks to company includes 1) Further PKR devaluation, 2) Increase in Non-production days and 3) Adverse regulatory changes.
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