Karachi, April 26, 2019: The Quarterly Board Meeting of Indus Motor Company Ltd. for the quarter and nine months ended 31st March FY 2018-19 was held on April 26, 2019.
The company’s combined sales of CKD & CBU vehicles for the nine months period ended March 31, 2019, increased by 7%, to 50,181 units as against 47,103 units sold for the same period last year. Accordingly, the market share stood at 27% of the locally manufactured PC & LCV vehicles for the nine months period.
The company’s net sales turnover for the nine months ended March 31, 2019 increased by 18% to Rs. 117.98 billion as compared to Rs. 99.83 billion for the same period last year, while profit after tax decreased by 12% to Rs. 10.26 billion as against Rs. 11.64 billion achieved for the same period last year. The overall revenue mainly increased due to improved volumes of Toyota Corolla, whereas, the net profit declined mainly on account of rise in input costs due to depreciation of PKR against USD and JPY.
Commenting on the performance, Mr. Ali Asghar Jamali, CEO, Indus Motor Company, said that the recent imposition of 10% FED has drastically reduced the sales volumes of 1700cc and above vehicles. This needs to be revisited by the Government in order to attain sustainable volumes for the sector, that will not only support the auto sector but will also result in higher overall revenue to the Government.
The Board of Directors declared third interim cash dividend of Rs. 30 per share for the quarter ended March 31, 2019 which, on cumulative basis, adds up to Rs. 87.5 per share for the nine months ended March 31, 2019 as compared to Rs. 95 per share for the same period last year.
The Company has extended the warranty period from 2 year or 50,000 km to 3 years or 100,000 km, for all CKD and CBU products in line with its commitment to the ‘Customer First’ philosophy.
During the quarter, Indus Motor Company won the 34th Corporate Excellence Award from the Management Association of Pakistan for the Industrial Awards Category, the Global SAP Innovation Award in the category of Process Innovator along with the Corporate Social Responsibility Award in the category of Sustainable Initiatives by National Forum for Environment and Health.