Business

Indus Motor’s profit rises 23% to Rs15.8b

Earnings get boost from increase in sales, income from other source

Our Correspondent August 31, 2022

Pakistan is seeing a massive growth in car sales, which amounted to 184,099 units in the 10 months of the ongoing fiscal year with Indus Motor’s share being 52,987. PHOTO: IMC

KARACHI:

Net profit of Indus Motor Company – the manufacturer and sole distributor of Toyota and Daihatsu vehicles in Pakistan – increased 23% to Rs15.80 billion in the wake of rise in sales and surge in income from other sources in the year ended June 30, 2022, according to a bourse filing on Tuesday. In the fourth quarter (AprilJune 2022) alone, its net profit shrank 90% to Rs0.51 billion compared to Rs5.12 billion in the previous quarter (January-March 2022), the company said in a statement.

The automaker announced a 16-day temporary shutdown of its production plant from September 1 to 16, 2022 “due to insufficient inventory levels to maintain its production on account of delay in approvals from State Bank of Pakistan (SBP) for import of CKD (completely knocked down or loose parts) kits and components of passenger vehicles.” Its board of directors recommended a final cash dividend of Rs3.25 per share. It was in addition to the combined interim cash dividend of Rs90.5 per share already paid during the year.

The company’s share price dropped 2.81% (or Rs28.66) and closed at Rs991.43 with trading in 10,179 shares at the Pakistan Stock Exchange (PSX) on Tuesday. Indus Motor had reported a net profit of Rs12.83 billion in the previous year ended June 30, 2021, according to its profit or loss statement dispatched to the PSX. “Increase in turnover and profitability for the year was mainly due to higher CKD and CBU (completely built up/ complete vehicle) sales volumes,” Indus Motor said in the statement.

“Decrease in profitability in the last quarter is mainly on account of increase in input costs due to unprecedented depreciation of PKR (rupee) against US dollar, increase in freight charges and soaring international commodity prices.” The company’s earnings per share increased to Rs201.04 in the year under review compared to Rs163.21 in the previous year. During the year ended June 30, 2022, the sales volume of CKD and CBU vehicles increased 31% to 75,611 units compared to 57,731 units last year. The company produced 72,438 units in FY22 compared to 59,187 units produced last year.