Lahore - Indus Motor Company Ltd has announced its 9MFY16 financial results, wherein the company has posted the net earnings of Rs8.8b, up by 38 percent.
The company also tagged third interim cash dividend of Rs20/share. The result is in line with expectations.
In 9MFY16, sales figures of Indus Motors improved by 17 percent to Rs79.7 billion on account of 19 percent accelerated car sales to 48.1k units.
These inflated sales can be attributed 20 percent healthy sales of Corolla to 43.3k units. Additionally, gross margins also tweaked by 2.1pps to 16.2 percent on account of drop in CRC steel price by 33.6 percent along with JPY/PKR depreciation of 3 percent.
However, other operating expenses rose by 37 percent. Resultantly, net earnings improved by 38 percent to PKR 8.8bn (EPS PKR 112.6).
During 3QFY16, revenues of Indus Motors jumped up by 7 percent QoQ to Rs28.3bn, on the back of 8 percent uptick in unit sales to 17.3k. Furthermore, gross margins descended by 36bps to 15.7 percent, likely on the back of 10 percent rise in steel prices and 6 percent QoQ sharp JPY/PKR appreciation.
Resultantly, earnings have remained stable at Rs37.56/share.
Meanwhile, Al Ghazi Tractors Limited (AGTL) posted 1QCY16 earnings of Rs 466million (EPS: PKR8.05/sh), down 24 percent YoY.
The YoY decrease in earnings can be attributed to 18 percent YoY decline in the top line due to 19 percent YoY decline in volumetric sales and 64 percent YoY decline in other income on the back of depleting cash reserves.
The result announcement also accompanied first interim cash dividend of Rs 25.0/share. With target price of Rs 486/sh, experts have an overweight call on the scrip offering a total return of 27 percent (upside 20 percent, D/Y 7 percent) from the last closing.
Meanwhile, Kot Addu Power Company Limited (KAPCO) has announced its 9MFY16 results, wherein the power producer has posted net earnings of Rs 6.2 billion (EPS Rs 7.05), down 13 percent YoY.
The decline in earnings is mainly due to likely higher O&M expenditure and 43 percent YoY lower other income (explained by lower penal mark-up income owing to improved recoveries).
However, the decline in profitability was partially compensated by lower fuel losses backed by 44 percent YoY drop in HSFO prices and 54 percent YoY drop in finance cost backed by decreasing debt levels and continued monetary easing.