Indus Motor Company Declares Profit after Tax of PKR 15.8 Billion for FY18
The company also announced PKR 3.3 Billion new investment to enhance its vehicle manufacturing productivity, resulting in capacity increase to 76,000 units per annum.
Karachi – 28th August, 2018: The Board of Directors of Indus Motor Company (IMC) Ltd. met on August 28, 2018 to review the company’s financial and operating performance for the year ended June 30, 2018.
The company posted net sales revenue of Rs. 140.2 billion, up by 25% as compared to Rs. 112.27 billion last year, while profit after tax grew by 21% to 15.8 billion from Rs. 13 billion posted last year and profit before tax grew by 20% from Rs. 19.1 billion last year to Rs. 23 billion in the year ended.
The overall increase in the revenue and net profits is attributed to higher sales volume on account of the launch of new models, change in sales mix and higher other income owed to increase in fund size. Demand momentum for automobiles remained solid throughout the period, due to increased spending power, despite rising fuel prices and accessibility to reasonably priced auto financing.
The company operated its manufacturing facilities beyond capacity working daily in overtime hours and off Saturdays to produce 62,886 units, up by 5% compared to 59,945 units last year.
Keeping in view the sustained growth in demand year on year, the Board of Directors approved a new investment of PKR 3.3 Billon to further enhance vehicle manufacturing productivity, which is expected to result in capacity increase to 76,000 units per annum by 2020-21. This plan will take the overall investment by the company to around PKR 7 Billion on improvement of production volumes.
Ali Asghar Jamali, CEO Indus Motor Company said, “We are committed to the Pakistani market and to our loyal customers who have shown great trust in our products year on year. We are delighted to announce a new investment of PKR 3.3 billion to further enhance annual manufacturing productivity, resulting in increased capacity to 76,000 units”