Maker of Toyota Corolla posts Rs4.2 billion profit in 3 months

Third-quarter result shows year-on-year increase of 42%

KARACHI: Indus Motor Company Limited posted a net profit of Rs4.2 billion in the third quarter of the current fiscal year ended March 31, according to a company notice sent to the Pakistan Stock Exchange (PSX). The result showed an increase of 42% compared with Rs2.95 billion in the same period of last year.

Earnings per share (EPS) increased to Rs53.05 from an EPS of Rs37.56 in the period under review. The results take nine-month (Jul-Mar) earnings of the fiscal year 2016-17 to Rs10.2 billion (or an EPS Rs130.3), up by 15.8% based on year-on-year comparison.

The announcement also accompanied a cash dividend of Rs30 per share, taking total payout for the year to Rs80 per share.

Meanwhile, Indus Motor’s share price closed at Rs1,840.84 on Monday, up by 4.7% as the KSE-100 Index closed at 50,111.

According to a report by BMA Research, the uptick can be attributed to increase in volumes of Hilux and Fortuner during the period under review.

“Earnings improvement can be attributed to 28.4% quarter-on-quarter better net sales as production issues faced in the second quarter of fiscal year 2016-17 were dealt with by the start of this quarter and 91 basis points expansion in gross margins, likely due to better trading sales and favourable raw material (steel) cost,” said the report.

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

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