IMC Declares profit after tax of PKR 5.1 billion for FY2019-20

Karachi: The Board of Directors of Indus Motor Company Ltd. (IMC) met on August 10, 2020 to review the company’s financial and operating performance for the year ended June 30, 2020.

The net sales turnover for the year ended, June 30,2020 decreased by 46% to Rs.86 billion as compared to Rs.158 billion in the last fiscal year, while profit after tax for the year also decreased by 63% to Rs.5.08 billion, as against Rs.13.71 billion achieved in the same last year. During the year, the Company contributed a sum of Rs.35.9 billion to the national exchequer.

The decline in turnover and profitability for the year was mainly due to lower volumes, primarily due to challenging economic conditions, imposition of taxes and duties and lockdown on account of COVID-19 pandemic. The combined sales of Toyota CKD and CBU vehicles stood at 28,837 units, compared to 66,211 units in the previous year.

The industry already burdened by inconsistent economic policies; has now been exposed to additional challenges on account of the COVID-19 outbreak. The collective impact of higher taxation, shrinking GDP, consistent PKR devaluation and the COVID-19 lockdown, has greatly impacted the operational capability of the automotive industry. Due to delayed resumption, the auto sector could not revive in the last quarter of FY 19-20 as per PAMA data; April and May 2020 were the hardest hit months, with April 2020 recording zero sales in the passenger cars segment across the industry.

Ali Asghar Jamali, CEO IMC said “IMC has, and always will be devoted to Pakistani market and to our customers whose interest and belief in our products is rapidly increasing every year. It is because of the support of our customers and their trust in us that IMC is working diligently to provide them with the best even during the times of global pandemic that has caused an overall economic slowdown.”

During the year, the Company discontinued the Corolla 1.3L vehicles in March 2020, which performed as a market leader in the segment for over 25 years. The flagship Corolla brand will continue in 1.6L and 1.8L segments as available worldwide. On March 19, 2020, the Company opened booking for the new-age masterpiece, the all new Toyota Yaris with variants in 1.3L and 1.5L segments. Despite a complete lockdown in the country and no significant marketing activities being conducted, Toyota Yaris has been very well received by customers.

Based on the results, the Board of Directors announced a final dividend of Rs.7 per share, making the annual dividend for the year Rs.30 per share.