Indus Motor Company (IMC) has announced earnings of Rs 2,679 million in 3QFY20, declining by 20% year over year YoY basis. According to Topline, the earnings came in above industry expectations on the back of higher-than-expected gross Margin. Along with the result, the company has also announced a cash dividend of Rs10/share for 3QFY20, taking cumulative payout of Rs23/share for 9MFY20.
During 3QFY20, the IMC net sales declined by 20% YoY on the back of lower unit sales as company recorded sales of 11,125 units in 3QFY20 compared to 16,935 units in 3QFY19.
On a Quarter over Quarter (QoQ) basis, unit sales recorded significant growth of 49% in 3QFY20 which is mainly on back of the new year effect and multiple promotions & discounts offered on 1.3L variants by the company.
Other Income has also increased by 109% QoQ as the company's cash flows improved due to higher sales. Higher QoQ sales coupled with improvement in Gross Margin (+4.15ppts QoQ) and Other Income, resulted in earnings improving by 172% QoQ.
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