FY13 heaves Indus Motors in gloom

Having its volumetric sales plunged by 35 percent YoY; FY13 embarks on with a murky picture for Indus Motor Company.
The first quarter of FY13 has not presented much to write home about for the Company as its sales volume stood at just 8,299 units; the lowest tally in the past 21 months.
Corolla, despite being the Companys flagship brand; touted a volumetric slump of 34 percent, clocking in at 7,032 units at the end of 1QFY13, as against 10,682 units in the same period last year. Moreover, the production of Cuore completely sluiced in the 1QFY13; while its sales volume plummeted drastically to 71 units compared to 1,282 units in the same period last year. The Company has halted production of this model, hence the tapering off of sales under this head.
Conversely, Hilux recorded a momentous growth of 40 percent, over the same period last year at 1200 units as its new model provoked tremendous customer response.
On the volumetric front, 1QFY13 remains bleak for the entire industry as the industry sales numbers also drastically slipped by 29 percent, compared to the previous year from 39,235 in 1QFY12 to 27,933 units in 1QFY13.
In contrast to sales volume, the companys top line posted a dive of 21.4 percent owing to a substantial boom of around 170 bps in margins, on the back of continuous price hikes.
The companys operating profit witnessed a substantial turn down of 28 percent owing to a 31 percent surge in distribution and administrative expenses and 44 percent slice in the other income.
During the period under review, the company has been able to trim down its financial cost considerably by around 75 percent which slightly facilitated the company to maintain its PBT, PAT and EPS at tolerable levels.

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Packages Ltd.

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Rs (mn)                         3QCY11    3QCY12       chg

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Net Sales                        2,885     2,886     0.03%

Cost of sales                    2,506     2,511     0.20%

Gross profit                       379       374    -1.32%

Gross margin                     13.1%     13.0%         -

Distribution & selling expenses    104        97    -6.73%

Administrative expenses             65        81    24.62%

Finance cost                       241       238    -1.24%

Profit from operations             241       237    -1.66%

Earning per share (Rs)          -25.04     -4.58         -

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