KARACHI – Indus Motor Company (IMC), manufacturer of Toyota vehicles, has posted Rs3.216 billion profit after tax in the first quarter of the current fiscal year as against Rs1.297 billion in the same period last year.
As per the financial results announced on Friday, the increase in net profit was on account of cost reduction efforts, kaizen initiatives and old inventory at a favourable exchange rate sold during the quarter.
Whereas, in last year’s similar period, the IMC observed gross loss as the company absorbed the full impact of input cost increases on account of severe rupee devaluation, to maintain commitment with the customers.
During the three months ended Sept 30, 2023, net sales turnover decreased by 12.3% to Rs 32.671 billion, as compared to Rs 37.249 billion for the same period last year.
The combined sales of Completely Knocked Down (CKD) and Completely Built-up Units (CBU) vehicles of the Company for the quarter, decreased by 49% to 4,583 units as against 8,994 units sold in the corresponding period last year.
Consequently, the market share of the Company in the overall market stood at approximately 22% with respect to PAMA players for the first three months period.
The Company produced 4,614 vehicles during the said three months of the fiscal year, registering a 50% decrease, as compared to 9,218 units produced in the same period last year. The Company experienced a decline in production during the period primarily due to low demand and supply chain challenges.
Ali Asghar Jamali, IMC’s Chief Executive, commented, “The new fiscal year has kicked off on a bleak note, nevertheless, we remain resolute in our commitment to our stakeholders. We request the government to create a nurturing and conducive environment that fosters growth and supports the automotive sector. Key measures should include providing a level playing field to local automotive manufacturers against used car imports, and promoting Hybrid Electric Vehicles (HEV) to reduce fuel consumption and curb the import bill of Pakistan.”
The Earnings Per Share (EPS) of IMC for the three-month period ended Sept 30, 2023, is Rs 40.91 in comparison to Rs16.50 reported in the same period last year.
The Board of Directors has declared a first interim cash dividend of Rs24.50 per share for the quarter.
