Indus Motor’s profit increases 40pc to Rs1.85bn in 1QFY21

The Board of Directors of Indus Motor Company (IMC) on Wednesday released its financial results for the first quarter ended September 30, 2020.

The company’s combined sales of complete knocked down (CKD) and complete built-up (CBU) units for the quarter increased by 73pc to 11,809 units against 6,839 units sold in the same period last year. The market share of IMC in the overall market stood at approximately 27pc during the first quarter.

The company’s net sales turnover for the quarter increased by 65pc to rs34.19 billion compared to Rs20.72 billion in the same period last year; while profit after tax increased by 40pc to Rs1.85 billion against Rs1.32 billion achieved in the same period last year.

The increase in turnover and profitability for the three-month period was mainly due to higher CKD and CBU volumes, and increased other income due to improved cash flows, however, due to the depreciation of Pak Rupee and absorption of costs, the gross margin of the company reduced to 6.7pc against 9.7pc in same period last year.

The overwhelming response received for Toyota Yaris also led to volume increase. The company has opened booking for the Toyota Corolla 1.6 Manual Transmission vehicle, considering the customer demand, and is consistent with IMC’s policy of providing customers with more options and features.

The earnings per share of the company stood at Rs23.48 as compared to Rs16.78 reported during the same time last year. The BoD declared first interim cash dividend of Rs12 per share for the first quarter as compared to Rs7 per share in the same period of last year.

Expressing his views, IMC CEO Ali Asghar Jamali stated, “We would like to appreciate our customers for their continued loyalty towards our products as well as acknowledging the tremendous and dedicated efforts of our staff, vendors, dealers, business partners and the entire Indus team during these challenging times.”

1 COMMENT

  1. No wonder if you inflate the price to such a level that an ordinary citizen can no longer afford to buy then YES, any one can have such a huge increase in profit.

    I’m not sure what’s the policy but when PKR losing its value against USD, they were increasing prices on a weekly basis. What about now? Why your prices are not falling despite PKR has strengthened. I would continue to buy a Japanese made vehicle instead of the crap you sell in the market.

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