Indus Motor’s FY24 EPS Surges 56% YoY, Aligns with Expectations

Staff Report:
Indus Motor Company (INDU) has announced its FY24 earnings, with an EPS of Rs191.76, reflecting a 56% year-on-year (YoY) increase, aligning with industry expectations.

On September 2, 2024, Indus Motor Company (INDU) reported its 4QFY24 results, revealing a profit of Rs5.7 billion (EPS of Rs72.08), up 48% YoY. The results were in line with industry expectations.CNG industry in Pakistan unveils plan of $778.93m benefit to the country

This brings the FY24 earnings to Rs15.1 billion (EPS of Rs191.76), compared to FY23’s profit of Rs9.7 billion (EPS of Rs122.96), a 56% YoY increase.

INDU has announced a final cash dividend of Rs43 per share, bringing the total FY24 payout to Rs114.7 per share, in line with expectations.

Net sales rose by 27% YoY and 15% quarter-on-quarter (QoQ) to Rs54.2 billion in 4QFY24, driven by an increase in units sold, which reached 7,069 units in 4QFY24 compared to 6,503 units in 3QFY24 and 5,512 units in 4QFY23.

Gross margins for 4QFY24 stood at 14.2%, slightly below expectations. This represents a decrease from 18.1% in 4QFY23 and 14.7% in 3QFY24. The decline in gross margin was primarily due to car price reductions towards the end of 3QFY24.

On a YoY basis, gross profits remained flat at Rs7.7 billion in 4QFY24.

Distribution expenses surged by 281% YoY but declined by 21% QoQ to Rs2 billion in 4QFY24. Meanwhile, administrative expenses increased by 36% YoY and 77% QoQ to Rs929 million in 4QFY24.

Other income increased by 68% YoY and 3% QoQ to Rs4.2 billion in 4QFY24. However, for FY24, other income totaled Rs13.7 billion, marking a 4% YoY decline.

The effective tax rate stood at 32% for 4QFY24, compared to 42% in 3QFY24 and 57% in 4QFY23.