Indus Motor’s profit increases 13.5% to Rs13 billion

Company operates at full capacity to meet orders


Our Correspondent August 25, 2017
PHOTO: REUTERS

KARACHI: Indus Motor Company’s profit increased 13.5% to Rs13 billion in fiscal year 2016-17 (FY17) on the back of an uptick in car sales, according to a bourse filing on Thursday.

The automobile producing firm had registered a profit of Rs11.45 billion in the preceding fiscal year 2015-16.

Accordingly, earnings per share (EPS) surged to Rs165.41 in FY17 from Rs145.74 in the previous year.

The company’s board of directors recommended a final cash dividend of Rs35 per share. This was in addition to the interim dividends of Rs80 per share already paid during the year.

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Indus Motor’s share price dropped 2.43%, or Rs42.51, to Rs1,700.79 with 33,220 shares changing hands at the Pakistan Stock Exchange.

Car sales rose 3% to Rs112.27 billion in FY17 from Rs108.75 billion in the preceding year.



A press statement issued by the company said it sold 60,586 units during the year, down 6% from the 64,584 units sold in FY16. “The company achieved market share of 28%” in the wake of these sales, the statement said.

“Demand for automobiles remained strong due to positive consumer sentiments, stable economic environment, availability of reasonably priced auto finance and infrastructure spending by the government, which provided much-needed boost to the entire industry,” it said.

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“The remarkable business performance is mainly attributable to the change in sales mix, substantial improvement in trading business and the launch of second generation of Toyota Fortuner and eighth generation of Toyota Hilux Revo,” it added.

In order to fulfil market demand and reduce delivery time cycle, the company operated its manufacturing facilities at full capacity throughout the year working overtime and on Saturdays to minimise the impact of time lag on the customers.

“A total of 59,945 units were produced in spite of several production constraints as compared to 64,096 units produced last year,” it said.

The company maintained that the demand for Fortuner showed a substantial recovery after the introduction of a new model in January 2017 with 1,375 units sold, up 128% compared to 602 units sold during the same period of last year.

Hilux sales closed at 5,860 units, down 1% compared to 5,923 units last year, while production constraints stifled Corolla sales to 52,676 units, down 8% from 57,452 units last year.

Published in The Express Tribune, August 25th, 2017.

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