Karachi, August 30, 2022 (PPI-OT): Automobile Assemblers – Indus Motor Company Limited

Earnings: Indus Motor Company Limited (INDU) announced its financial result for 4QFY22. As per the result announcement, the Company reported earnings of PKR 509mn (PKR 6.5/share) during 4QFY22 compared to PKR 4,398mn (PKR 56.0/share), a decline of 88%y, in the same period last year. However, on a quarterly basis earnings are down by 90%q.

Dividends/Payouts: INDU announced final cash dividend of PKR 3.25/share along with the result bringing total cash payout for FY22 to PKR 93.8/share compared to PKR 103.5/share last year.

Operating performance: During the period under review, the Company reported net sales of PKR 72.10bn, an increase of 50.1%y, mainly due to higher prices and sales volume. Gross profit margins took a hit during the quarter arriving at 1.2% compared to 12% recorded during 4QFY21 (3QFY22: 7.7%). Moreover, INDU recorded operating costs (including admin and distribution costs) of PKR 1.6bn, up by 50%y. EBIT during the period under review came at PKR 4.3bn (decline of 33%y). In addition, the Company booked higher effective tax charge to the tune of 87% during 4QFY22 (3QFY22: 27.4%) compared to 30.3% in the same period last year.