Indus Motor Q2 profit plunges 71pc

Indus Motor Company (IMC) said its earnings for 2QFY20 slumped 71 percent to Rs986 million as sales’ slump and gross margins’ depletion.

The carmaker in a statement said the EPS for the period under discussion came out at Rs12.54 against Rs43.31 for the corresponding period of the previous fiscal year.

The company announced an interim dividend of Rs6/share for 2QFY20, which brings the total payout for 1HFY20 to Rs13/share.

The company’s revenues in 2QFY20 declined by 47 percent year-on-year, given the unit sales of 7,468 in 2QFY20 compared to 17,212 in 2QFY19.

“The fall in unit sales is largely due to higher car prices and decline in auto financing amidst higher interest rates environment,” brokerage Topline said.

The company’s gross margins declined by 4.27ppts year-on-year to 8 percent in 2QFY20 as the company has not been able to fully pass on the impact of rupee depreciation and high inflation.

On a sequential basis, 2QFY20 earnings declined by 25 percent quarter-on-quarter as gross margins contracted by 1.72ppts and other income declined by 23 percent quarter-on-quarter.