Indus Motor Company Limited (IMC), announced its financial results for the year ended June 30, 2024. Due to a decline in sales volumes, the company’s net sales turnover for the year ended June 30, 2024, decreased by 14% to Rs. 152.48 billion, as compared to Rs. 177.71 billion in the previous year.
Despite the challenging environment, the Company increased Profit After Tax (PAT) by 36%, to Rs.15.07 billion, against Rs. 9.66 billion in the last year. The increase was mainly attributable to reduced input material costs because of positive exchange rate movement, cost reduction measures and additional parts localisation. During the year, the Company launched the Toyota Corolla Cross, the country’s first locally manufactured Hybrid Electric Vehicle (HEV) with the highest-ever localized content, contributing to the positive results. Return on deposits/ investments remains a sizeable part of the company’s profits, owing to higher interest rates.
Ali Asghar Jamali, Chief Executive Officer of IMC, stated, “This year has been marked by significant progress in improving the trade balance, reducing imports, and curbing inflation towards year-end. The company has navigated various economic challenges, including persistent inflation, high-interest costs, and reduced consumer purchasing power. In response, we implemented aggressive productivity improvements and adjusted our sales mix to align with market demand, particularly emphasizing the localization of Hybrid Electric Vehicles.”
The CEO further expressed, “Consistent with our commitment to increasing localization, the Board of Directors has approved an investment of PKR 4 billion over the past 12 months to develop local parts and advance the ‘Make in Pakistan’ initiative.”
We urge the government to create a supportive environment that fosters growth and localization within the automotive sector. Key measures include enabling the industry to operate at full manufacturing capacity, implementing tax reductions to improve product affordability, and safeguarding the jobs of over 2.5 million direct and indirect workers in the auto sector.
Based on the results, the Board of Directors announced a final dividend of Rs 43 per share, making the annual dividend Rs 114.70.
