The after-tax profit of Indus Motors Company Limited decreased by one-tenth to Rs 2.9 billion during January-March quarter of 2016, the company revealed in its financial report to the Pakistan Stock Exchange on Friday.
The vendor of famous Toyota Corolla brand of cars reported an after-tax profit of Rs 2.9 billion or Rs 37.56 per share, down 10% from Rs 3.2 billion or Rs 41.72 per share during the same quarter of 2015.
The company’s share price increased by Rs 6.07 or 0.6% from the last day’s price i.e. Rs 951.60 and closed at Rs 957.67 per share. A total of 13,550 shares of IMCL changed hands at the end of the market on Friday.
The company also announced an interim cash dividend of Rs 20. Taurus Securities deems the result in line with the market expectations.
INDU reported Rs 4.4 billion in revenues during the first quarter of the year, a decrease of 10.1% compared to Rs 4.9 billion it earned in sales during the corresponding period of 2015. The company’s gross margin, on the other hand, clocked in at 15.6% during the quarter, down by 1.4 percentage points from 17.03% during the same quarter of 2015.
Taurus Securties said the decline in margins can be on the back of 10% rise in steel prices and 6% quarter-on-quarter sharp JPY/PKR appreciation.
