Karachi: Toyota-IMC says demand for automobiles declined significantly in Pakistan during the first half of the fiscal year 2019-2020, due to a slowdown in the economy, devaluation of the PKR against the US Dollar, and various structural reforms and policies of the Government.
It says demand was also affected by Additional Custom Duty and FED coupled with rising inflation and declining purchasing power of consumers. Industry growth remained heavily dependent on consistent government policies and favourable economic conditions.
Mr. Ali Asghar Jamali, CEO, Indus Motor Company, says, “I am happy to state that during this period, IMC has remained focused on improving its operational efficiencies, maintaining high quality standards, effectively managing cost pressures and delivering maximum value to its customers.”
Combined sales of CKD and CBU produced by IMC-Toyota during the half year ended December 31, 2019, stood at 14,453 units. This was down by 56% over 33,087 units for the same period in the previous year. IMC has reported that the decline was mainly due to custom duty increase and levy of FED. It also said that while rise in interest rates reduced auto financing, the devaluation of Pakistan Rupee was also a factor in the decline.
IMC’s net sales revenues for the half year ended December 31, 2019, declined to Rs 42.8 billion as compared to Rs. 76.4 billion for the same period last year. The Company’s profit after tax, declined to Rs 2.3 billion as against Rs. 6.9 billion in the same period the previous year. The marked decline in sales and profit for IMC was also a result of the devaluation of the Pak Rupee against the US Dollar.
The Earnings per Share of IMC for the half year ended December 31, 2019, was Rs. 29.3 as compared to Rs. 87.9 in the same period last year. Even then, a second interim cash dividend of Rs. 6 per share was declared by the company Board of Directors for the half year ended December 31, 2019.
IMC received the Pakistan Stock Exchange (PSX) Top 25 Performing Companies Awards for 2018 for its dedication and excellent performance. IMC was also declared as the Most Outstanding Company in the category of Automobile & Components during 2019 by Asiamoney, an influential business publication. It also won the Commendable Kaizen Award in the seventh cycle of Customer Satisfaction Kaizen Evolution (CSKE) hosted by Toyota Motor Asia Pacific (TMAP).
IMC also won the Corporate Social Responsibility Award 2020 from the National Forum for Environment and Health for its contribution to sustainable development of society.