Corporate results: Indus Motor posts profit of Rs3.1b

Earnings per share jump to Rs39.99.

KARACHI: Indus Motor Company – the makers of Toyota Corolla – has announced a net profit of Rs3.1 billion in the first six months (Jul-Dec) of fiscal year 2015, up by a whopping 132% compared to the same period of the previous fiscal year.

Earnings per share (EPS) of the company also jumped to Rs39.99 compared to an EPS of Rs17.20 in the same period of last fiscal year.

Alongside the result, the company announced an interim cash dividend of Rs20 per share.

“The result was above our expected net profit of Rs2.6 billion (or an EPS of Rs32.94) and dividend per share of Rs15 per share where the deviation in profits is due to higher than expected gross margins,” AKD Research reported on Friday.

The gross margins increased in the first six months (Jul-Dec) of fiscal year 2015 by 11.88%, up 2.86 percentage points year- on- year (YoY).

The topline increased to Rs39 billion, up 50% and the other income jumped by 192% YoY.



With the highest ever monthly sales volume of 6,415 units in January 2015, the volumetric uptick is encouraging with second half (Jan-Jun) of fiscal year 2015 sales expected to be better than the first six months (Jul-Dec) of fiscal year 2015, the report predicted.

On the margin front, positive surprises can come from further Japanese yen weakness along with higher than anticipated dip in input costs on slow world economic growth rate, it added.

Published in The Express Tribune, February 21^st, 2015.

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