Indus Motor net profit doubles to Rs3.4b
The company announced a final dividend of Rs10 per share for the year ended June 30, 2010.
Indus Motor Company Limited’s net profit more than doubled to Rs3.4 billion on the back of higher car sales and gross margins during fiscal year 2010.
The result beat analysts’ expectation as a consensus of two research firms revealed that they had expected the company to post a net profit of around Rs3.16 billion.
The company announced a final dividend of Rs10 per share for the year ended June 30, 2010 taking the cumulative payout to Rs15 per share, according to a notice sent to the stock exchange on Monday.
Sales jump
Net sales of the company jumped 59 per cent to Rs60.1 billion mainly owing to a 49 per cent increase in unit sales and an average eight per cent increase in prices of cars.
Indus Motor’s Toyota and Daihatsu registered an impressive growth of 48 per cent to 52,063 units for the year ended June 30, 2010 from 35,276 units sold in the same period last year.
Sales and production numbers reached a new peak for the company in the period under review.
The domestic auto industry had witnessed a 67 per cent drop in volumes over the last couple of years but bounced back in fiscal year 2010.
The sharp rebound in demand is mainly attributable to the combined effect of healthy agricultural income and marginal increase in auto financing, the company said in a statement.
Gross margins improve on lower steel prices
Despite an average exchange rate depreciation of 14 per cent and 7 per cent against the Japanese yen and US dollar, respectively, the company still managed higher gross margins as steel prices decreased 10 per cent and car prices surged.
Gross margins increased to 7.8 per cent for fiscal year 2010 against last year’s 6.1 per cent.
Other operating income increased by 148 per cent to Rs1.8 billion from Rs727 million as the company had more cash on the back of advance booking from customers.
Moreover, cost rationing helped to restrict the rise in administrative and distribution costs. It rose by a meagre 3.4 per cent on yearly basis to Rs850 million.
The company outperformed the industry and increased its market share from 32 per cent to 34.5 per cent.
Outlook
Indus Motor just like the complete industry witnessed a decline in its June sales. Sales may suffer a sharp dip in fiscal year 2011 as the impact of floods gets pronounced with the passage of time, according to BMA Capital analyst Sana Bawani.
Additionally, yen has currently surged to new record levels against the rupee, crossing the Re1 mark which leads to expectation of another round of price increases in coming months, added Bawani.
Published in The Express Tribune, August 31st, 2010.
The result beat analysts’ expectation as a consensus of two research firms revealed that they had expected the company to post a net profit of around Rs3.16 billion.
The company announced a final dividend of Rs10 per share for the year ended June 30, 2010 taking the cumulative payout to Rs15 per share, according to a notice sent to the stock exchange on Monday.
Sales jump
Net sales of the company jumped 59 per cent to Rs60.1 billion mainly owing to a 49 per cent increase in unit sales and an average eight per cent increase in prices of cars.
Indus Motor’s Toyota and Daihatsu registered an impressive growth of 48 per cent to 52,063 units for the year ended June 30, 2010 from 35,276 units sold in the same period last year.
Sales and production numbers reached a new peak for the company in the period under review.
The domestic auto industry had witnessed a 67 per cent drop in volumes over the last couple of years but bounced back in fiscal year 2010.
The sharp rebound in demand is mainly attributable to the combined effect of healthy agricultural income and marginal increase in auto financing, the company said in a statement.
Gross margins improve on lower steel prices
Despite an average exchange rate depreciation of 14 per cent and 7 per cent against the Japanese yen and US dollar, respectively, the company still managed higher gross margins as steel prices decreased 10 per cent and car prices surged.
Gross margins increased to 7.8 per cent for fiscal year 2010 against last year’s 6.1 per cent.
Other operating income increased by 148 per cent to Rs1.8 billion from Rs727 million as the company had more cash on the back of advance booking from customers.
Moreover, cost rationing helped to restrict the rise in administrative and distribution costs. It rose by a meagre 3.4 per cent on yearly basis to Rs850 million.
The company outperformed the industry and increased its market share from 32 per cent to 34.5 per cent.
Outlook
Indus Motor just like the complete industry witnessed a decline in its June sales. Sales may suffer a sharp dip in fiscal year 2011 as the impact of floods gets pronounced with the passage of time, according to BMA Capital analyst Sana Bawani.
Additionally, yen has currently surged to new record levels against the rupee, crossing the Re1 mark which leads to expectation of another round of price increases in coming months, added Bawani.
Published in The Express Tribune, August 31st, 2010.