IMC ANNOUNCES RS. 9.1BN PROFIT AFTER TAX

Karachi, August 28: The Board of Directors of Indus Motor Company Ltd, met on Friday 28th August to review the company’s financial and operating performance for the year ended June 30. IMC announced a net profit after tax of Rs 9.1 billion for FY 2014-15against the Rs 3.9billion posted for previous fiscal year.

The improving economic environment, driven by the government efforts provided much needed boost to the entire industry, enabling the company to post record gross sales revenue of Rs 116 billion, up 70% compared to Rs 69 billion for the same period last year. The surge in the after tax profitability is mainly attributable to increased sales volume of additional 22,917 units, improvement in margins after years of erosion and Kaizen initiatives aimed at improving operational efficiency, work processes, strategic sourcing of supplies and cost reduction in general.

The combined sales of Toyota CKD and CBU vehicles set a new annual record of 57,387 units for the company. The record sales volume achieved during the year resulted in a 32% market share for FY 2014-15.

Benefiting from strong demand generated by the new 11th generation Toyota Corolla launched in July 2014, the company outperformed and stayed well ahead of competition throughout the year, clocking in 51,398 units. . The combined sales of Hilux Light Commercial Vehicle grew 7%, to 4,823 units compared to 4,520 units sold during the same period last year. The demand for Fortuner showed partial recovery upon withdrawal of 10% FED, selling 772 units, up 98%compared to 390 units sold during the same period last year.

In order to fulfill market demand and reduce delivery time cycle, the company operated its manufacturing facilities at full capacity throughout the year undertaking overtime and working off Saturdays to minimize the impact of time lag on customers. This enabled the company to achieve a new annual production record of 56,888 units during the FY 2014-15.

The company achieved a return on Equity of 38% for the FY 2014-15. Based on the results, the Board of Directors announced a final dividend of Rs 40. per share, making the total payout of Rs80.per share. Last year, Rs 29.50 per share was paid to the shareholders.

In FY 2014-15 the Company contributed a sum of Rs 32 billion to the national exchequer, which amounts about 1.2% of the total revenue collection by the Government of Pakistan during the year. In the 25 years since the incorporation, IMC’s contribution to the national exchequer stands at an impressive number of nearly Rs 250 billion.