Indus Motor announces financial results for FY 0708 - Aug 19, 2008 The Board of Directors of Indus Motor Company Ltd., met on August 19, 2008 to review the company’s financial and operating performance for the year ended June 30, 2008. The sales and production of Indus Motor’s Toyota and Daihatsu brands for the year ended June 30, 2008 were 50,802 units and 48,222 units respectively which is a new record compared to last year’s figures of 50,557 units and 47,821 units respectively. The company’s sales revenue increased to Rs 41 billion, up 6% over Rs. 39 billion; with the after tax profit of Rs 2.3 billion, as compared to Rs 2.7 billion achieved during the year ended June 30, 2007. Earnings per share decreased to Rs 29.15, as compared to Rs. 34.93 in the previous year. Nationwide sales of locally assembled passenger cars and light commercial vehicles (LCV) that had previously grown continuously over the last five years declined by 8% to 187,412 units from 204,212 units sold in 200607. Production in the industry also declined to 187,644 units for the period ended June 30, 08, down 5.7% over 198,986 units last year. Although there has been a decrease in the import of used cars from 28,493 units in 20067 to 13,145 units in 20078, they still continue to impede growth of the auto industry. The impact of political uncertainty compounded with a general slow down in the economic environment resulting from rising interest rates, limited credit availability for auto financing, depreciation of the Pak Rupee against major currencies, unprecedented rise in prices of oil, steel and other inputs, inflation, etc impacted the demand negatively. The Board of Directors appreciated the Company’s performance and declared a final cash dividend of Rs 6.5 per share, making for a total of Rs 10.5 per share during the year. The total dividend paid for the same period last year was Rs 13 per share. Indus Motor has requested the government to take note of the recommendations made by the Pakistan Automobile Manufacturers Association to accelerate growth of the local industry and withdraw the 5% Federal Excise Duty and increase of 1% Sales Tax, amongst other measures.