KARACHI: The Board of Directors of Indus Motor Company (IMC) Ltd. met on August 28, 2018 to review the company’s financial and operating performance for the year ended June 30, 2018.
The company posted net sales revenue of Rs. 140.2 billion, up by 25% as compared to Rs. 112.27 billion last year, while profit after tax grew by 21% to 15.8 billion from Rs. 13 billion posted last year and profit before tax grew by 20% from Rs. 19.1 billion last year to Rs. 23 billion in the year ended.
The overall increase in the revenue and net profits is attributed to higher sales volume on account of the launch of new models, change in sales mix and higher other income owed to increase in fund size. Demand momentum for automobiles remained solid throughout the period, due to increased spending power, despite rising fuel prices and accessibility to reasonably priced auto financing.
The company operated its manufacturing facilities beyond capacity working daily in overtime hours and off Saturdays to produce 62,886 units, up by 5% compared to 59,945 units last year.
Keeping in view the sustained growth in demand year on year, the Board of Directors approved a new investment of PKR 3.3 Billon to further enhance vehicle manufacturing productivity, which is expected to result in capacity increase to 76,000 units per annum by 2020-21. This plan will take the overall investment by the company to around PKR 7 Billion on improvement of production volumes.
Ali Asghar Jamali, CEO Indus Motor Company said, “We are committed to the Pakistani market and to our loyal customers who have shown great trust in our products year on year. We are delighted to announce a new investment of PKR 3.3 billion to further enhance annual manufacturing productivity, resulting in increased capacity to 76,000 units”
The combined sales of Toyota CKD and CBU vehicles stood at 64,000 units, up by 5.7% compared to 60,586 units in the previous year. In spite of the increased volume, IMC’s market share declined from 28% to 24%, mainly due to overall market expansion and growth.
In August 2017, the Company launched Toyota Corolla Big Minor Model Change consisting best-in-class safety and luxury features, which kept the demand strong for the flagship vehicle. The sales for Toyota Corolla stood at 51,412 units for the period, down by 2.4%, compared to 52,676 units last year.
Toyota Hilux was launched in February 2018, with minor improvements and with advanced features aimed at luxury and a superior off-road performance. The combined sales of Hilux LCVs grew 27.5% to 7470 units compared to 5860 units sold during the same period last year.
In March 2018, Toyota Fortuner underwent a minor model change with cutting-edge features and another variant of diesel engine was launched. This resulted in increased sales of 4186 units, up 204% compared to 1375 units last year. Camry Hybrid Vehicle was also an addition to the product line-up this year.
Based on the results, the Board of Directors announced a final dividend of PKR45 per share, making the annual dividend for the year PKR 140 per share. During the year, the Company contributed a sum of Rs. 48 billion to the national exchequer, which amounts to about 1% of the total revenue collection by the Government of Pakistan for the year. News Desk