INDU robust earnings growth in 9MFY14 – WE Research
By: WE Financial Services Limited
Indus Motor Company Limited (INDU) recently announced corporate results for the period ended Mar 31, 2014 where the cumulative earnings of the company posted a significant growth of 34.1% YoY in 9MFY14 to Rs 2,321 million (EPS: Rs 29.53) versus a profit after taxation (PAT) of Rs 1,730 million (EPS: Rs 22.01) in 9MFY13. The growth in earning was on back of higher production, impact of depreciation of Japanese Yen, and increased other income. On a single quarter basis, the bottom line of the company rose by 28.8% YoY to Rs 969 million (EPS: Rs 12.32) in 3QFY14 as compared to Rs 752 million (EPS: Rs 9.57) in 3QFY13.
Higher prices spur top line growth
On back of increased sales volume and prices, the net sales revenue of the company totaled Rs 44,764 million in 9MFY14 which is 4.8% YoY up when compared to a net sales revenue of Rs 42,696 million in the identical period in FY13. The gross profit of the company hike by 29.6% YoY to Rs 3,991 million in 9MFY14 as against Rs 3,079 million in 9MFY13. Therefore the gross profit margin went up to 8.91% in 9MFY14 versus 7.21% in 9MFY13.