Karachi, February 13, 2023 (PPI-OT): Automobile Assemblers – Indus Motor Company Limited

Earnings: Indus Motor Company Limited (INDU) announced its 2QFY23, financial result. The company reported earnings of PKR 1.3bn (PKR 16.9/share) compared to same period last year of PKR 4.7bn (PKR 60.4/share), down by 72%y/y.

Dividend/Payout: The company announced a final cash dividend of PKR 10.2/share during the quarter,
taking 1HFY23 total payout to PKR 18.4/share compared to PKR 64.5/share in 1HFY22.

Operating Performance: During the period under review, company reported net sales of PKR 49.6bn (down 29%y/y). Moreover, higher cost of goods, meant company’s reported consecutive second quarter of gross loss of PKR 0.5bn or -1% gross margins, albeit overall loss was contained during the quarter compared to previous quarter. Similarly, company continue to post operating loss for third consecutive quarter to the tune of PKR 1.5bn (PKR 3.3bn in previous quarter). Other income amid rising interest rates jumped to PKR 3.4bn (up by 38%y/y), which to an extent supported company’s bottom line.