Karachi, August 28, 2023 (PPI-OT): Indus Motor Company Limited

Earnings: Indus Motor Company Limited (INDU) announced its 4QFY23, financial result. The company reported earnings of PKR 3.8bn (PKR 48.6/share) compared to same period last year of PKR 0.5bn (PKR 6.5/share), up by +7.5xy/y. This brings total loss for FY23 to PKR 9.7bn (PKR 123.0/share) compared to PKR 15.8bn (PKR 201.0/share) in the same period last year.

Dividend/Pay-out: The Company announced cash dividend of PKR 29.0/share along with the result bringing total cash pay-out to PKR 71.8/share for FY23.

Operating Performance: During the period under review, company reported net sales of PKR 42.7bn (down 41%y/y). Company reported gross profit of PKR 7.7bn or 4% gross margins, up by +9.3xy/y compared to PKR 0.8bn or 1% gross margin in the similar period last year. Gross margins improved owing to higher vehicle prices and favourable exchange rate movement. Other income clocked in at PKR 2.5bn during 4QFY23 down by 51%y/y likely owing to lower advances from customers. Finance Cost dropped by 38%y/y during 4QFY23. Effective tax rate stood at 53% during 4QFY23 compared to 88% in the same period last year bringing total effective tax rate for FY23 to 42% (FY22: 38%).