The board of directors of Indus Motor Company Limited met on April 26 to review company's financial and operating performance for the third quarter ended March 31, 2011. According to a press release issued, here on Thursday, the company's sales grew by seven percent to 15,084 units in this quarter as compared to 14,145 units sold for the same period last year.
The company's production also increased by five percent to 14,969 units as against 14,203 units produced in the same period last year. Its combined sales revenue for nine months ended in March 2011, and CKD, CBU and parts business increased by 13 percent to rupees 45.3 billion from Rs 40.1 billion, whereas profit after tax was down by 26 percent to Rs 1.6 billion from Rs 2.2 billion.
Although sales have increased, decline in the nine months profitability is primarily because of higher input costs, which the company has absorbed in order to cushion adverse impact on its valued customers. Commenting on the quarterly performance and future outlook, spokesperson of IMC said.
"We expect the demand for IMC products to remain robust; however, earnings will remain under pressure due to increase in material cost and inflationary trends. Our flagship model of new Corolla and Hilux 4x4 pick-up is expected to perform well looking at the customers' strong preference for these products; challenge for IMC ahead will be to restore peak productions as soon as supplies are available to us".-PR
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