During the year ended June 30, 2022, the sales volume of CKD and CBU vehicles increased by 30.97%, to 75,611 units as against 57,731 units sold last year. The Company produced 72,438 units for the year, as compared to 59,187 units produced in the same period last year.
The net sales turnover for the year ended June 30, 2022, increased by 53.74 % to Rs. 275.5 billion as compared to Rs. 179.2 billion in the last fiscal year, while profit before tax for the year also increased to Rs. 25.5 billion, as against Rs. 18.2 billion achieved in last year. The increase in turnover and profitability for the year was mainly due to higher CKD and CBU sales volumes.
In relation to performance of the 4th Quarter ended June 30, 2022, the net sales turnover increased by 5.68% to Rs. 72.1 billion as compared to Rs. 68.2 billion in the Quarter ended March 31, 2022. However, profit after tax for the quarter decreased significantly by 90% to 0.51 billion, as against Rs. 5.12 billion achieved in the Quarter ended March 31, 2022. The decrease in profitability in the last quarter, is mainly on account of increase in input costs due to unprecedented depreciation of PKR against US Dollar, increase in freight charges and soaring international commodity prices.
Expressing his views, Ali Asghar Jamali, Chief Executive of IMC, commented, “Despite the turbulent business environment and external challenges that the auto sector is currently facing, Alhamdulillah, with the support of our employees and customers, we have achieved consistently high standards of excellence and performance. The Company has achieved the highest ever unit sales and production in the current fiscal year. The Company has however faced significant challenges on cost fronts, contributed mainly by significant devaluation of PKR, high input material costs, freight charges, etc. Moreover, widening of current account deficit and decline in reserves has forced the Government to resort to tighter fiscal control and monetary policies, including hike in interest rates, stringent auto financing rules and import restrictions for CKD of passenger vehicles, which will affect the volumes and profitability of the auto sector in upcoming periods.”
He added, “Sadly, the recent torrential rains and flash flooding, the worst the country has witnessed, has been catastrophic with villages wiped-out, thousands of lost lives and millions left homeless. In this hour of dire need, it is the moral obligation and duty of every Pakistani, to step forward and offer their help, no matter how little. Under our Corporate Social Responsibility (CSR) badge, Concern Beyond Cars, we are undertaking a flood relief operation with our team of volunteers who will be on the ground, in rural Sindh in the first phase.”
The Company also announced to Pakistan Stock Exchange (PSX) yesterday, that it is going for temporary shutdown its production plant from 1st September 2022 to 16th September 2022, due to insufficient inventory levels to maintain its production, on account of delay in approvals from State Bank of Pakistan for import of CKD Kits and components of Passenger vehicles. The company has also shut down its plant earlier in the current month from August 1 to August 13, 2022, which was announced to PSX on 29th July 2022.
Based on the results, the Board of Directors announced a final dividend of 3.25 per share, making the annual dividend for the year to Rs. 93.75 per share.