KARACHI: The Board of Directors of Indus Motor Company Ltd. (IMC) met on August 26, 2021 to review the Company’s financial and operating performance for the year ended June 30, 2021.
The Company posted net sales revenue of Rs. 179.2 billion, a 108% increase compared to Rs. 86.2 billion last year, while profit after tax increased by 151% to Rs. 12.8 billion from Rs. 5.1 billion posted last year. Profit before tax increased by 150% from Rs. 7.3 billion last year to Rs. 18.2 billion as at the fiscal year end.
During the year, sales volume of CKD and CBU vehicles increased by 100%, to 57,731 units as against 28,837 units sold last year. Consequential to increased demand, the Company produced 59,187 units for the year, as compared to 28,519 units produced in the same period last year.
The increase in turnover and profitability for the year was mainly due to higher CKD and CBU volumes, primarily due to improved economic conditions and healthy demand generated on account of launch of the facelift models of Corolla, Hilux and Fortuner along with wider acceptance of Toyota Yaris, the best-selling sedan for the year. The profitability also increased on account of increase in other income mainly due to return on placements on account of improved fund position of the Company.
Chief Executive, Ali Asghar Jamali, expressed, “Alhamdolillah, we have had a very good year despite the frequent challenges arising owing to COVID-19 pandemic. We have not compromised on work standards and continue to maintain the high quality of our vehicles, following the kaizen philosophy of continuous improvement, and diligently practicing the ‘Toyota Way’ throughout our operations. This helped the Company to achieve consistent levels of excellence.”
He further added, “Since its inception, IMC has supported the Government’s ‘Make in Pakistan’ initiative. We really appreciate the Government’s measures to reduce Federal Excise Duty and Additional Custom Duty. The decrease in duties and taxes resulted in reduction in prices of vehicles in July 2021, which will eventually boost the industry to continue positive momentum. We would request the Government to consider reduction in FED on Double Cabin 4x4 LCVs, as well. Additionally, the Government’s consistent effort to promote the local automotive industry in the Hybrid sub-sector is noteworthy. Its intent to locally develop Hybrid Electric Vehicles (HEVs), Plug-in Hybrids (PHEVs) and Battery Electric Vehicles (BEVs) to mitigate climate change and reduce dependency on oil imports is appreciated.”
Based on the results, the Board of Directors announced a final dividend of PKR 36.5 per share, making the annual dividend for the year PKR 103.5 per share.
Copyright Business Recorder, 2021
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