INDU_1HFY21 Result Review, (AKD, Off the Analyst's Desk, Feb 26, 2021)
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AKD Research - Off the Analyst's Desk |
February 26, 2021 |
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INDU: 1HFY21 Result Review (In line with expectations) |
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· Indus Motor Company Limited (INDU) announced results for 2QFY21 where the company posted PAT of PkR2.96bn (EPS: PkR37.6) up 60%QoQ/200%YoY, in line with our expectations. Thereby, the company achieved 1HFY21 PAT of PkR4.8bn (EPS: PkR61.08) up 108%YoY. Auspiciously, the company announced dividend of PkR25/sh, well above our expectations. · The surge in profitability was primarily driven by major uptick in topline registering growth of 33%QoQ/106%YoY on the back of remarkable growth in sales of all Toyota Vehicles by 93%YoY/23%QoQ as the economy recovered from the pandemic. Vigorous sales also resulted from no major price hikes by Indus in the last quarter. · Moreover, the gross margin of the company improved to 8.2%in 2QFY21 (vs 6.7% in 1QFY21) due to favorable PKR dynamics and controlled inflation. Additionally, other operating income of the company increased 26%QoQ on back of rising short term investments. The finance cost declined 29%QoQ taking quarterly net margin to 6.5% (against 5.4% in 1QFY21). · Going forward, we expect the company to post healthy profitability in light of robust demand of passenger cars in the country, stable PKR and successful initiation of COVID-19 vaccination drive at home. |
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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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