KARACHI – During the financial year 2022-23, Indus Motor Company Limited (IMC) earned a profit after tax of Rs9.66 billion, a 39% decline from the previous year’s accomplishment of Rs15.8 billion.
During the fiscal year ending June 30, 2023, sales of CKD and CBU vehicles decreased by 58% to 31,602 units compared to 75,611 units sold last year.
The company produced 32,696 units for the year, which is a significant decrease from the 72,438 units produced last year.
The net sales turnover for FY 2022-2023 decreased by 36% to Rs177.71 billion compared to Rs.275.5 billion in the same period last year. Additionally, profit after tax decreased by 39% to Rs9.66 billion from Rs15.80 billion last year.
The decline in turnover and profitability was mainly due to lower sales volume of CKD and CBU vehicles, on account of import restrictions and demand contraction.
The profitability for the year also declined due to an increase in input costs, mainly driven by the severe devaluation of PKR against US$ and the high inflation impact.
The negative impact on the net profit was partially offset by higher return on investments, on account of the increase in interest rates.
Ali Asghar Jamali, Chief Executive of IMC, commented, “In light of the prevailing circumstances, the automobile industry in Pakistan is facing the worst ever economic downturn. During the year, local and global disruptions along with import restrictions on CKD kits, resulted in plant closures, thereby affecting employment of the industry. The cumulative effect of currency devaluation, soaring inflation, rising interest rates and increase in duties and taxes, forced the industry to escalate car prices, which have gone beyond customer reach, thereby, resulting in continuous demand contraction.”
Based on the results, the Board of Directors announced final cash dividend of Rs29 per share, making the total annual dividend for the year to Rs71.8 per share.
