IMC earns Rs9.41bn profit after tax in nine months of FY24

KARACHI: Indus Motor Company (IMC) announced its financial results for the nine-month period ending March 31, 2024, that witnessed a 61 percent increase in profit after tax, to Rs 9.41 billion, compared to Rs 5.84 billion, for the same period last year.

IMC’s net sales turnover for the nine-month period decreased to Rs 98.23 billion, as compared to Rs 135.03 billion in the same period last year. The combined sales of Completely Knocked Down (CKD) and Completely Built-up Units (CBU) vehicles for period, decreased by 47% to 13,922 units as against 26,055 units sold in the corresponding period last year.

The market share of the company in the overall market stood at approximately 20%. The Company produced 13,217 vehicles during the period, registering an 51% decrease, as compared to 26,848 units produced in the same period last year.

Expressing his views, CEO IMC, Ali Asghar Jamali, said, “With plummeting customer demand, it’s been a tough nine months and adding fuel to fire, has been the unabated import of used cars into the country that has wreaked havoc on the auto industry.

We request the Government to take specific measures that accelerate and sustain auto sector volumes over the future months. Other contributors to the volume drop have been higher duties and taxes along with the deteriorating economic situation. Any further hike in duties and taxes will be detrimental to the auto industry and will also reduce the overall revenue to the Government from this sector.

Emphasising on It is of critical importance that we continue to nurture foreign investor’s confidence and encourage further investment and request the Government to sustain the HEV policy incentives announced in the AIDEP 21-26, consequently, promoting a greener environment and reducing the country’s fuel import bill.”

During the third quarter, IMC received various accolades, such as, The Professionals Network (TPN) recognized IMC’s efforts through awards in leading categories, “Clean Energy Transition” and “Community Impact”. IMC was also recognized for “CSR Initiatives” by The National Forum for Environmental & Health (NFEH) and the Federal Board of Revenue lauded the company with the “Compliant Corporate Taxpayer” Award, presented to Ali Asghar Jamali, CEO IMC by the Prime Minister Shahbaz Sharif at Islamabad.

The Earnings Per Share (EPS) of IMC for the nine-month period ending March 31, 2024, stands at PKR 119.67 in comparison to Rs 74.35 reported in the same period last year. The Board of Directors declared a third interim cash dividend of Rs 34 per share for the period, as compared to Rs 24.40 per share, for the same period last year.