KARACHI: The Indus Motor Company (IMC), announced its financial results for the first quarter ended September 30, 2023, that witnessed an increase in profit after tax to Rs 3.216 billion as against Rs 1.297 billion in the same period last year.

The increase in net profit was on account of cost reduction efforts, kaizen initiatives and old inventory at favorable exchange rate sold during the quarter.

Whereas, in the last year similar period, the company observed gross loss as the company absorbed the full impact of input cost increases on account of severe Rupee devaluation, to maintain our commitment with the customers.

During the three months ended Sept 30, 2023, net sales turnover decreased by 12.3% to Rs 32.671 billion, as compared to Rs 37.249 billion for the same period last year.

The combined sales of Completely Knocked Down (CKD) and Completely Built-up Units (CBU) vehicles of the company for the quarter, decreased by 49% to 4,583 units as against 8,994 units sold in the corresponding period last year.

Consequently, the market share of the company in the overall market stood at approximately 22% with respect to PAMA players for the first three months period.

The company produced 4,614 vehicles during the said three months of the fiscal year, registering a 50% decrease, as compared to 9,218 units produced in the same period last year.

The company experienced a decline in production during the period primarily due to low demand and supply chain challenges.

Ali Asghar Jamali, the company’s Chief Executive, commented, “The new fiscal year has kicked off on a bleak note, nevertheless, we remain resolute in our commitment to our stakeholders.

We request the government to create a nurturing and conducive environment that fosters growth and supports the automotive sector.

Key measures should include providing level playing field to local automotive manufacturers against used car imports, and promote Hybrid Electric Vehicles (HEV) to reduce fuel consumption and curb the import bill of Pakistan.”

The Earnings Per Share (EPS) of the company for the three-month period ended Sept 30, 2023, is Rs 40.91 in comparison to Rs 16.50 reported in the same period last year. The Board of Directors are pleased to declare a first interim cash dividend of Rs 24.50 per share for the quarter.

Copyright Business Recorder, 2023