Karachi, April 30, 2015: The Board of Directors of Indus Motor Company Limited, met yesterday to review the financial results for the quarter and nine months ended March 31, 2015.
Strong demand for the new Corolla emanating from improving macroeconomic indicators and law and order situation contributed to robust performance and all time high record production, sales and earnings for the quarter and year to date, said the company statement.
The combined (CKD & CBU) sales for the quarter at 17,344 units and nine months to March 2015 at 40,425 units are up 49% and 50% respectively compared to 11,631 units and 27,031 units sold in the corresponding periods last year enabled the company to enhance the market share from 22% to 27%.
In order to fulfill the growing market demand and reduce delivery time cycle for customers, the company operated its manufacturing facilities at full capacity to achieve production of 16,918 units for the quarter and 40,139 units for the nine months to March 2015, up 50% and 54%, compared to 11,253 units and 26,107 units produced for the same period last year.
The sales revenue for the quarter grew 55% to Rs 29.1 billion compared to Rs 18.7 billion, while the profit after tax was Rs 3.3 billion as against Rs 0.9 billion achieved for the same period last year. On the basis of nine months to March 2015, the revenue at Rs 68.2 billion was up 52% compared to Rs 44.7 billion and resultant profit after tax of Rs 6.4 billion versus Rs 2.3 billion for the corresponding period last year.
An additional sales volume of 13,394 units over the nine months period last year, improved margins, higher income stream from treasury operations and tighter control on fixed costs contributed to the enhanced profitability. During the period, the company’s contribution to the government exchequer of Rs 23 billion was also a new record.
Based on the results, the company declared a second interim dividend of Rs 20 per share for the nine months ended March 2015, which on cumulative basis adds up to Rs 40 per share.
The company recognizes efforts of the government to improve law and order situation which augers well for the economy to realize its potential and expects the fourth quarter to remain strong.