Concern voiced over government policies being inimical to auto industry: Non-Production Days at IMC criticised in AGM

"Non-Production Days (NPDs) at Indus Motor Company's plants are due to the huge influx of imported used cars which affected the demand of locally produced cars negatively," said Ali S Habib, Chairman Indus Motor Company (IMC) while answering to shareholders' concerns on NPDs during the 23rd Annual General Meeting (AGM) of IMC held here on Saturday.
The shareholders vowed to raise their voices at the relevant forums against such hostile policies to help the local auto industry to flourish and continue being a major contributor to the national economy. IMC Chairman Ali S Habib, commenting on the occasion, mentioned that amid all economic and political challenges, the business environment for automakers and parts supplier remained uncertain as the industry continuously appealed for logical reasoning by decision makers, keeping in view the greater national interest. Compounded with depreciation of the Pak Rupee against major currencies and other inputs, inflation, etc impacted the operations negatively.
While answering to a query about launch of new models, IMC Chairman said that launching a new model was like setting up a new company as it required not only a complete product development and marketing strategy but also new parts and equipment which took time and huge capital investment. Moreover, the current policies in the auto industry are also not favourable for investment in manufacturing.
In the AGM, IMC's financial and operating performance for the year ended June 30, 2012 was reviewed and audited accounts were approved. The sales and production of Indus Motor's Toyota and Daihatsu brands for the year ended June 30, 2012 were 55,060 units and 54,917 units respectively compared to last year's figures of 50,943 units and 50,759 units respectively. The company's sales revenue increased to Rs 77 billion, up 25 percent over Rs 61.7 billion; with the after tax profit of Rs 4.3 billion, as compared to Rs 2.7 billion achieved during the year ended June 30, 2011. Earnings per share increased to Rs 54.7 as compared to Rs 34.9 in the previous year.
For the year the total dividend of Rs 32 per share was declared compared to the total dividend paid for the same period last year of Rs 15 per share. The shareholders appreciated the management for company's performance and dividend payout in such testing times for the industry and expressed hope that the company will perform even better in the coming year if the government reconsiders the policies in favour of local industry as per global norms.