INDU_9MFY23 Analyst Briefing Takeaways,(AKD Off the Analyst's Desk May 05, 2023)
Indus Motor Company Limited (INDU) held a corporate briefing session on 5th May’23 to discuss 9MFY23 financial result and future outlook.
- To recall, Indus Motors Company Limited announced its financial results for 9MFY23 where company posted PAT of PkR5.84bn (EPS: PkR74.35) down by 62%YoY. The decline in profitability is majorly driven by lower sales revenue down by 34%YoY.
- The decline in gross margins in 9MFY23 recorded at 0.15% vs 8.6% SPLY which is majorly attributable to PkR devaluation and high international prices was not passed on customers as per company’s commitment.
- Company expects to sustain gross margins in 4QFY23. However, continued PkR devaluation coupled with high inflation and lower purchasing power may lead to low gross margins.
- As per company management, auto financing accounts for 30% of company’s demand which has collapsed amid high rates on financing loans while demand for remaining 70% of cash customers have fallen to one-third of volume in comparison of last year.
- The management stated the launch on Corolla Cross is in progress and expected to commission in FY25.
- As per management, they’re pursuing to increase localization levels steadily amid the present import restrictions. To note, Corolla’s localization levels stand at 60% in terms of value (after deduction of taxes and duties).
- The company is constantly urging the Govt. to allow them the import 50% of last fiscal year’s imports. This would least ensure the survival of automotive industry which employs over 3mn people in total.
- The company also recommends the suspension of payment against the compensation of delayed deliveries over 60 days which is KIBOR+3% to customers.
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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