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Tuesday, August 27, 2013

Indus Motor Posts 23% Decline in Profits for the FY12-13

 
Karachi, August 27: The Board of Directors of Indus Motor Company Ltd., met on August 27, 2013 to review the Company’s financial and operating performance for the year ended June 30, 2013.

FY13 was a difficult year for the company with operational challenges stemming from the glut of used cars in the market, weak economy, energy shortage and poor law and order situation in the country. On year to date basis, sales of Toyota CKD and CBU decreased by 28% to 39,774 units compared to 55,060 units sold during the same period last year.



Despite the above uncertainties and the inability of the government to reach closure on a long-term auto policy, the company for its part continued to aggressively expand the marketing network and launched spruced up variations in the existing line up and new product offerings such as Toyota Fortuner to the customers.

Adverse market conditions compelled the company to curtail production to 37,321 units, down 32% compared to 54,917 units produced during the same period last year. IMC combined market share for locally manufactured vehicles for FY13 stood at 28%.

The sales revenue for the year ended June 2013 was Rs 63.8 billion, down 17% compared to Rs 77 billion posted for the same period last year. Continuous efforts at improving operational efficiencies focus on Kaizen to improve processes and cost cutting initiatives enabled the Company to achieve profit after tax of Rs 3.3 billion as compared to Rs. 4.3 billion posted for the same period last year. Earnings per share decreased to Rs 42.72, as compared to Rs 54.7 in the previous year.

The Board of Directors appreciated the Company’s performance and declared a final cash dividend of Rs 15 per share, making for a total of Rs 25 per share during the year.

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