INDU - 1QFY24 Result Review, (AKD Off the Analyst's Desk Oct 27, 2023)
AKD, Off the Analyst's Desk
INDU - 1QFY24 Result Review
Indus Motor Company Limited (INDU) announced its 1QFY24 results today where the company posted PAT of PkR3.2bn (EPS: PkR40.9) vs. PkR3.8bn (EPS: PkR48.6) in the previous quarter, down16%QoQ, primarily due to normalization of gross margins during the quarter. The result came in line with our expectations.
- Topline of the company clocked in at PkR32.7bn in 1QFY24, a decline of 23%/12% on quarterly and yearly basis, respectively. This significant decline is majorly attributable to a dip in the sales volume, with the company selling only 4,511 units compared to the previous quarter’s sales of 5,512 units, (down 18%QoQ).
- Gross margins of the company normalized at 10.1% during the quarter, whereas last quarter’s gross margins were at 18.1% primarily due to low cost inventory.
- Operating expenses witnessed a decrease of 23%QoQ, clocking in at PkR919mn, possibly due to lower advertising and sales promotion expenditure.
- Other income remained high, amounting to PkR2.8bn, a quarterly increase of 12%, primarily due to increase in ST investments (PkR44bn as per last financials) and higher effective interest rates.
- Finally, company announced cash dividend of PkR24.5/sh, in line with the historical payout ratio.
AKD Securities Ltd. is one of the leading securities firm in Pakistan, providing a comprehensive range of investor focused services, including equity brokerage, economic and securities research, investment banking and financial advisory services. AKD Securities accounts for more than 6% of the average daily value of the Karachi Stock Exchange. AKD Securities was the first brokerage house to launch an online trading platform in Pakistan in November 2002 and now has the largest market share with over 6000 customers. This has helped diversify and expand the retail investor base in the country and ushered in a whole new universe of investors to the stock market.
AKD Securities Ltd. caters to a diversified group of domestic and international institutional investors, high net worth individuals and upscale retail clients, including expatriate Pakistanis. With high quality research, unparalleled execution and distribution capability for both regular and large block trades, AKD Securities Ltd. has earned an outstanding reputation in the Pakistani securities industry.Outside of commercial banks, AKD Securities Ltd. is one of the biggest capital market firms in the country. AKD Securities is the leader in raising and providing risk capital in underwriting, market making and mergers and acquisitions in Pakistan. Good corporate governance and professionalism are emphasized throughout the firm and AKD Securities Ltd. is amongst the very few companies to have introduced a firm-wide comprehensive CODE of ETHICS, overseen by an independent compliance manager.Ultimately, our success is based on the quality of service we provide to our customers and the trust and confidence reposed in us by them. Our focus, therefore, remains on customer satisfaction at all levels in the company.
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