Indus Motors receives 37% decline in YoY profit

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Indus Motor Company (IMC), Pakistan’s Toyota vehicle assembler, declared a profit after tax (PAT) of Rs3.216 billion for the third quarter of fiscal year 2022-23, a 37% decline from Rs5.118 billion in the same time the previous year. Other income at the automaker fell 5% from Rs3.18 billion last year to Rs3.04 billion in 3QFY23. This was “mainly due to a decline in short-term investments, resulting in lower interest income,” according to the report.

The automaker’s revenue fell 29% from Rs68.22 billion last year to Rs48.12 billion in January-March 2023. “lower units sold as company recorded sales of 7,285 units in 3QFY23 compared to 18,495 units in 3QFY22,” according to Topline Securities.

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IMC earned Rs3.05 billion in gross profit during 3QFY23, compared to Rs5.23 billion during the same period last year.

Earnings per share (EPS) were Rs40.92 as opposed to Rs65.11. On April 20, 2023, the board of directors met to examine the company’s financial and operational performance in the first nine months ended March 31, 2023.

Indus Motor’s PAT increased by 142% on a quarterly basis. “The increase in profit on a sequential basis can be attributed to an improvement in gross margins (+730bps QoQ), which resulted in an operating profit after two consecutive quarterly operating losses during FY23,” Arif Habib Limited (AHL) stated in a note.

In conjunction with the announcement, the firm issued an interim cash dividend of Rs24.4 per share. This is in addition to the interim cash dividend of Rs18.4 per share that was recently paid.

According to the expert, IMC was able to mitigate the impact of currency depreciation by dramatically raising the pricing of its vehicles.

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