Karachi, October 29, 2019: The Indus Motor Company’s net sales turnover for the 1st quarter ended September 30, 2019, decreased by 41% to 20.7 billion as compared to Rs. 34.9 billion, for the same period last year, while profit after tax decreased by 62 percent to Rs. 1.32 billion as against Rs. 3.51 billion achieved in the same period last year.
The Directors of Indus Motor Company Limited (IMC) said this in a statement issued here after the un-audited accounts of the Company for the quarter ended September 30, 2019, were released.
IMC’s net profit has declined mainly due to decrease in sales volumes. The Company’s combined sales of CKD and CBU units for the first quarter ended September 30, 2019, has decreased by 56 percent to 6,839 units against 15,560 units sold in the same period last year.
Market share of Indus Motor Company in the overall market stood at 20 percent approximately for the first quarter. The Company operated to produce 8,036 units of vehicles for the three month period, a decrease by 49.7 percent as compared to 15,977 units produced in the same period last year.
A decline in sales volumes was observed in all segments, mainly on account of price impact due to additional custom duty increase and levy of FED, while rise in interest rates has reduced auto financing. More importantly, fear factor in customers on account of documentation drive by Government, led customers to hold their expenditure not only in the auto sector but in other sectors as well.
Keeping in mind the market conditions and the economic downtrend, the Company has observed approximately thirty (30) Non Production Days (NPDs) to minimize its costs as the best alternative. Further, from the month of October, Company has started to operate on single-shift basis, which is expected to continue until improvement in market demand.
The Earnings Per Share of Company for the first quarter ended September 30, 2019, is Rs. 16.78 as compared to Rs. 44.63 reported during the same period last year. The Board of Directors is pleased to declare first interim cash dividend of Rs. 7 per share for the 1st quarter ended September 30, 2019, compared to Rs. 32.50 per share, for the same period last year.
Ali Asghar Jamali, CEO Indus Motor Company said, “Despite the broader macro-economic challenges and higher inflationary environment, Company is managing the pressure by improving efficiency, and placing tighter controls on overheads.”
“The Company remains committed to the ‘Customer First’ philosophy that demands a high level of contribution, dedication and efficiency from all levels in the Company, to delight all our valued customers throughout the supply chain. This is the cornerstone of the ‘Toyota Way’ and critical for the long-term success of the Company”, he added.