Lahore (Muhammad Yasir) The Board of Directors of Indus Motor Company (IMC) released its financial results for the first quarter ended September 30, 2020.
The Company’s combined sales of Complete Knocked Down (CKD) and Complete Built-up (CBU) units for the quarter increased by 73% to 11,809 units against 6,839 units sold in the same period last year. The market share of IMC in the overall market stood at approximately 27% for the first quarter.
The Company’s net sales turnover for the quarter increased by 65% to 34.19 billion compared to Rs. 20.72 billion, for the same period last year; while profit after tax increased by 40% to Rs. 1.85 billion against Rs. 1.32 billion achieved in the same period last year.
The increase in turnover and profitability for the three-month period was mainly due to higher CKD and CBU volumes, and increased other income due to improved cash flows, however, due to the depreciation of Pak Rupee and absorption of costs, the gross margin of the company reduced to 6.7% against 9.7% in same period last year.
The overwhelming response received for Toyota Yaris has also led to volume increase. The Company opened booking for the Toyota Corolla 1.6 Manual Transmission vehicle, considering the customer demand, and is consistent with IMC’s policy of providing customers with more options and features.
The Earnings per Share of the company stood at Rs. 23.48 as compared to Rs. 16.78 reported during the same time last year in September, 2019. The Board of Directors is pleased to declare first interim cash dividend of Rs. 12 per share for the first quarter as compared to Rs. 7 per share, for the same period last year.
Expressing his views, CEO IMC, Ali Asghar Jamali, stated, “We would like to appreciate our customers for their continued loyalty towards our products as well as acknowledging the tremendous and dedicated efforts of our staff, vendors, dealers, business partners and the entire Indus team during these challenging times.” He further added, “We look forward towards the continued support of our staunch customers as we move ahead with an expectation of the revival of economic activities and improved business activities in coming months.”
In the Extra Ordinary General Meeting of Indus Motor Company Limited held on October 28, 2020, the existing Directors of the Company were re-elected as Directors and subsequently, in the Board of Directors meeting held on same day, Mr. Mohamedali R. Habib and Mr. Yuji Takarada re-elected as Chairman and Vice Chairman, respectively, and Mr. Ali Asghar Jamali re-appointed as Chief Executive, of the Company, for a term of three years commencing from October 31, 2020.
IMC remains committed to the ‘Customer First’ philosophy that demands a high level of contribution, dedication and efficiency from all levels in the Company, to ensure maximum customer satisfaction throughout the supply chain. This is the cornerstone of the ‘Toyota Way’ and critical for the long-term success of the Company.