KARACHI: Indus Motor Company - the makers of Toyota Corolla in Pakistan - has announced a net profit of Rs8.84 billion in the first nine months (Jul-Mar) of fiscal year 2015-16, up 38% compared to Rs6.42 billion in the same period of last year, according to a company notice sent to the Pakistan Stock Exchange (PSX).
Earnings per share (EPS) jumped to Rs112.6 compared to Rs81.7 last year. The company also announced a third interim cash dividend of Rs20 per share.
Corporate results: Indus Motor announces profit of Rs5.9 billion
“The result is in line with our expectations,” Taurus Securities reported on Friday. The company has benefitted from low international steel prices and depreciation of Japanese yen that propelled its profits during the period, the report added.
The KSE 100-share Index was up 167 points or 0.5% to close at 33,739 on Friday. Indus Motor’s share jumped 0.62% to Rs957.6.
During the first nine months of the ongoing fiscal year, sales of Indus improved by 17% to Rs79.7 billion due to a 19% increase in car sales to 48,100 units. These inflated sales can be attributed to 20% rise in sales of Toyota Corolla to 43,300 units.
Additionally, gross margins also rose by 2.1 percentage points to 16.2% on account of drop in steel prices by 33.6% along with depreciation of Japanese yen against the Pakistani rupee (down 3%).
However, the company’s other operating expenses rose by 37%.
During the third quarter of fiscal year 2016, the company reported a net profit of Rs2.95 billion, down 11% compared to Rs3.27 billion in the same quarter of last year.
During this period, revenues jumped up by 7% quarter-on-quarter to Rs28.3 billion because of 8% uptick in unit sales to 17,300 units.
However, gross margins descended by 36 basis points to 15.7%, likely because of 10% rise in steel prices and 6% quarter-on-quarter rise in yen against the rupee.
Published in The Express Tribune, April 23rd, 2016.
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