The Half Yearly Board Meeting of Indus Motor Company Ltd. for FY 2017-18 was held on February 23, 2018. The combined sales of IMC CKD and CBU for the half year ended December 31, 2017 was 30,651 units, up 6% over 28,833 units for the same period last year. The company’s sales revenue increased to Rs.
63.3 billion from Rs. 51.4 billion for the same period last year, with an after tax profit of Rs. 7.36 billion, against Rs. 6.07 billion achieved in the same period last year. The increase in revenues and profits is mainly due to improved turnover of both CKD and CBU vehicles against the same period last year, along with improvement in operational efficiencies and sales mix.
An interim cash dividend of Rs. 32.5 per share was announced for the quarter ended December 31, 2017, as against same period last year of Rs. 25 per share.
Mr. Ali Asghar Jamali, CEO Indus Motor Company, commenting on the occasion, said that demand for automobiles remained robust throughout the period, stemming from the favourable macroeconomic indicators, positive consumer sentiment and the availability of consumer credit. Industry-wide sales of locally manufactured PCs/LCVs stood at 124,138 units during the first half of FY 2017-18, up 27% from 97,533 units sold during the same period last year. The import of used cars has increased significantly to 44,760 units for six months, as against 24,100 units last year for same period.
The abrupt and significant depreciation in the rupee towards the end of first half of the year, has increased the cost of imported inputs by the company and its vendors. This ultimately forced the company to regretfully pass on certain impact to the customers in terms of price increase of vehicles.
During the period, the company achieved the milestone of production of 750,000 vehicles since its inception. In December 2017, the company showcased its Camry Hybrid Vehicle, a luxury sedan with a powerful shape and captivating style, to key customers. A multi-billion-rupee investment is being made in the paint shop to increase production capacity, which is expected to yield results starting from the last quarter of this financial year.