Thursday 27 February 2014

Corporate results: Indus Motor revs up earnings

The company earned Rs473 million in the second quarter (2QFY14), much better than the Rs287 million it earned in second quarter of fiscal year 2013. PHOTO: FILE
KARACHI: Indus Motor Company (IMC) – the second largest car-maker in Pakistan – has announced a profit after tax of Rs1.35 billion during the first half of fiscal year 2013-14 (1HFY14) ending December 31, 2013, up 38% compared to Rs978 million in the corresponding period last year.
Earnings per share (EPS) of the company increased to Rs17.20 in 1HFY14 compared to Rs12.44 in 1HFY13.
The company earned Rs473 million in the second quarter (2QFY14), much better than the Rs287 million it earned in second quarter of fiscal year 2013.
Global Research on Wednesday reported that the earnings of the company were lower than its estimates of Rs1.44 billion or EPS of Rs18.42. It said that it happened when the import cost of Completely Knocked-Down (CKD) units jumped because of rupee depreciation against the dollar in the first quarter of FY14.
The company also announced an interim dividend of Rs6 per share, which was lower than the estimates of Rs10 per share, the report added.
AKD Research also said that earnings of the company were below its expected 1HFY14 net profit of Rs1.44 billion or EPS of Rs18.39, owing to lower than expected gross margins.
The company’s revenues clocked in at Rs26 billion during 1HFY14 against Rs24.27 billion during the same period of the last year, up 7% year on year (YoY).
The increase in revenues was chiefly supported by a 4% YoY increase in the company’s CKD sales to 15,179 units. On a quarterly basis, revenues depicted a decline of 9% YoY to Rs11.73 billion. IMC’s profits declined in fiscal year 2013 by a significant 23% to Rs3.35 billion compared to Rs4.30 billion in fiscal year 2012.

No comments:

Post a Comment

thank you for your precious time and feedback.