Indus Motors' first half fiscal year 2012-13 net sales revenue down

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Highlights - Corporate News

The Board of Directors of Indus Motor Company Limited has announced the company's financial and operating performance for the year ended December 31, 2012. After a record FY 2011-12, the sales and production of IMC for the first half year of the current FY 2012-13 ended on a depressing note.

The sales of Toyota brand (CKD and CBU) vehicles were down by 38 percent to 14,994 units compared to 24,341 units sold in the same period last year. The presence of used imported car models in the category of Corolla class also played a part in impacting the sales of the company and severely restricted IMC's market share of locally manufactured vehicles that declined to 25 percent compared to 30 percent achieved for corresponding period last year.

The sluggish market demand forced the company to shut down the plant facility for 53 non-production days. However, the Company remained steadfast in its commitment to its employees and did not allow any worker layoff which was appreciated by the entire workforce and the government.

The Company net sales revenue for the first half year ended December 2012 decreased by 26 percent to Rs 24 billion as compared to Rs 33 billion for the same period last year, while profit after tax amounted to Rs 0.98 billion versus Rs 1.77 billion for the same period last year.

Over all, the local auto industry faced a difficult period during the first half of FY13 with industry sales plunging 30 percent over the same period last year. During the said period, sales of locally manufactured passenger cars and light commercial vehicles were 58,000 units compared to 83,000 units sold in the same period last year. The decline in customers' demand for locally manufactured cars was in sharp contrast to the impressive recovery staged by the industry over the last three consecutive years.

The depreciation of the Pak Rupee against major currencies, unprecedented rise in prices steel and other inputs, inflation, etc., impacted the demand negatively. The end of calendar year 2012 saw an immense peak in the import of used vehicles to avail the maximum depreciation advantage in duty. Based on the results recorded above, the Board of Directors of Indus Motor Company declared an interim dividend of Rs 6 per share for the half year ended December 2012 compared to Rs 8 per share for same period last year.


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