Indus Motor Declares Rs 4.8 Billion Profit After Tax for First Half FY20-21
The Board of Directors of Indus Motor Company (IMC) released its financial results for the half-year ended December 31, 2020.
IMC’s combined sales of Completely Knocked Down (CKD) and Completely Built-up Units (CBU) units increased by 82% to 26,362 units against 14,453 units sold in the same period last year. The Company produced 26,383 vehicles, registering an 81 % increase, as compared to 14,555 units produced in the same period last year. IMC’s market share in the overall market stood at approximately 24.7% for the half year ended December 31, 2020.
The Company’s net sales turnover for the half year ended December 31, 2020, increased to Rs. 79.65 billion as compared to Rs. 42.78 billion, for the same period last year, while profit after tax increased to Rs. 4.8 billion as against Rs. 2.3 billion achieved in the same period last year.
The increase in turnover and profitability for the half-year period was mainly owing to higher CKD and CBU volumes, and increased other income due to improved cash flows. However, cost increases mainly due to Rupee devaluation eroded the gross profit margin to 7.55% against 8.81% in same period last year.
The Company experienced an overwhelming response to Toyota Yaris in the first, as well as second quarter of fiscal year 2020-21 which contributed to volume increase in Passenger Car segment. Moreover, Fortuner TRD variant was launched in October 2020 which too was well received by customers.
The Auto policy introduced in 2016 will end by June 2021. The policy enabled green field investments in the auto industry to reach the 500,000 units of annual production capacity, with multiple brands and product offerings. Consumer purchasing power was revitalized, and a reduction in interest rates led to an increase in auto financing, which contributed to demand in the first half of FY 20-21.
The Earnings Per Share of the Company for half year ended December 31, 2020 stood at Rs.61.08 as compared to Rs. 29.32 reported during the same period last year. The Board of Directors with pleasure, have declared second interim cash dividend of Rs. 25 per share for the half year ended December 31, 2020, compared to Rs. 6 per share, for the same period last year.
Expressing his views, CEO IMC, Ali Asghar Jamali, stated, “Overall, the automobile industry is clearly bouncing back. The economic upturn following the gloom and despair hovering over the auto industry during the COVID-19 lockdown, owes itself to the Government’s timely decision to ease the lockdown and introduction of favourable policies. Reduction in interest rates has been another factor that led to an increase in auto financing, bolstering consumer confidence.”
He further added, “We thank our valued customers who have always placed their trust in our products, as well as all our employees, stakeholders and shareholders for their sustained support.”
During the period, the Company received accolades, winning the “Most Outstanding Company in Pakistan 2020 (Automobiles and Component Sector)” awarded by Asiamoney, and the “Best Sustainability Report Award 2019” conferred by the Joint Committee of Institute of Chartered Accountants of Pakistan and Institute of Cost and Management Accountants of Pakistan.