Corporate results: Indus Motor’s profit increases a meagre 2%

Company earns Rs3.02b during Oct-Dec period.

KARACHI: Indus Motor Company, the maker of Toyota Corolla, has posted a net profit of Rs3.02 billion in the second quarter ended December 31, 2016, an increase of just 2% compared with Rs2.96 billion in the same period of the previous year, according to a company notice sent to the Pakistan Stock Exchange (PSX).

Earnings per share (EPS) increased to Rs38.51 compared with Rs37.67 in the period under review.

The company’s share price closed at Rs1,679.17, down 0.34% from its last day’s closing price as the KSE-100 index also declined to 49,007, down 54 points or 0.11%.

Cumulatively, its net profit in the first six months of fiscal year 2016-17 touched Rs6.07 billion or an EPS of Rs77.28 compared with Rs5.89 billion or an EPS of Rs75 in the same period of the previous year.

The company’s sales turnover contracted 3% year-on-year (YoY) in the outgoing quarter. However, reported revenues stood above expectations where higher-priced variants contributed more towards the sales mix, according to a Topline Securities report.

The company sold a total of 14,121 units during the Oct-Dec period, down 10% YoY. Amid declining volumes, average revenue per car grew by 7% YoY due to increased sales of higher-priced variants of Corolla while the newly-launched ‘Hilux Revo’ further supported revenues.

In the second quarter, distribution costs saw an increase of 61% YoY. On a sequential basis, net revenues remained flat.

Published in The Express Tribune, February 25^th, 2017.

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