Indus Motor Company (INDU): 4QFY20 EPS at Rs1.26, down by 97% YoY (below industry expectations)
- Indus Motor Company (INDU) announced earnings of Rs99mn in 4QFY20 (EPS Rs1.26, down 97% YoY) taking full year FY20 earnings to Rs5,082mn (EPS: Rs64.67, down by 63% YoY).
- Along with the result, company also announced a final cash dividend of Rs7.0/share for 4QFY20, taking cumulative payout to Rs30.0/share for FY20.
- The company’s revenues declined by 45% YoY In FY20, mainly attributable to 57% YoY fall in unit sales. The demand for new cars remained depressed throughout the outgoing year amidst high car prices and negative impact of COIVD-19 on consumer buying.
- In 4QFY20, revenues declined by 78% YoY and 69% QoQ due to COVID-19 related lockdowns and restrictions during the quarter, where unit sales dropped by 81% YoY and 72% QoQ. The company had Non Production days of 55-60 during the quarter.
- The lower unit sales also resulted in Gross Loss of Rs324mn in 4QFY20, given the high fixed cost/unit.
The Other Income of Rs11.04/share in 4QFY20 supported the bottom line of the company. However, it also declined by 22% QoQ amid monetary easing by SBP which resulted in lower interest rates.
Topline Securities is one of the fastest-growing brokerage houses in Pakistan. It has strong Equity Brokerage, Economic/ Equity Research, Commodity Trading and Corporate Finance & Advisory functions.
Topline Securities has been endowed with numerous awards by renowned international financial organizations. The highlights of which consists of the award for ‘Best Local Brokerage House of Pakistan’ by Asiamoney Brokers Poll (the largest Asia-focused equity services provider poll) in 2016 and ‘Best Equity Brokerage House’ by CFA Society Pakistan in 2015.
Previously, Topline Securities held the title for ‘Best Brokerage House’ for 4 consecutive years (2011-2014) by Asiamoney Brokers Poll. Other awards include the ‘Best Salesperson’ award by Asiamoney for 6 consecutive years (2011-2016), the ‘Arabia Fast Growth 500’ award and ‘Pakistan Fast Growth 100’ award in 2012 and 2013 by AllWorld Network.
JCR-VIS, a credit rating agency providing independent rating services in Pakistan has assigned initial rating of “A-2” for short term and “A” for long term to Topline Securities. Topline Securities is registered as Underwriter, Book Runner and Research Entity with Securities & Exchange Commission of Pakistan (SECP).
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.