KARACHI-Indus Motor Company Limited (IMC) announced its financial results for the year ended on June 30, 2023, that witnessed profit after tax declined by 39 percent to Rs9.66 billion, as against Rs15.80 billion achieved last year. During the year ended on June 30, 2023, the sales volume of Completely Knock Down Units (CKD) and Completely Built Units (CBU) vehicles decreased by 58 percent, to 31,602 units as against 75,611 units sold last year. The company produced 32,696 units for the year, as compared to 72,438 units produced in last year.
The net sales turnover for the FY 2022-2023, decreased by 36 percent to Rs177.71 billion, as compared to Rs275.5 billion in the same period last year, while profit after tax also decreased by 39 percent to Rs9.66 billion, as against Rs15.80 billion achieved last year. The decline in turnover and profitability was mainly due to lower sales volume of CKD and CBU vehicles, on account of import restrictions and demand contraction. The profitability for the year also declined due to increase in input costs, mainly driven by severe devaluation of PKR against US$ and high inflation impact. The negative impact on the net profit was partially offset by higher return on investments, on account of increase in interest rates. Expressing his views, Ali Asghar Jamali, Chief Executive of IMC, commented, “In light of the prevailing circumstances, the automobile industry in Pakistan is facing the worst ever economic downturn. During the year, local and global disruptions alongwith import restrictions on CKD kits, resulted in plant closures, thereby affecting employment of the industry. The cumulative effect of currency devaluation, soaring inflation, rising interest rates and increase in duties and taxes, forced the industry to escalate car prices, which have gone beyond customer reach, thereby, resulting in continuous demand contraction.” Based on the results, the Board of Directors announced final cash dividend of Rs29 per share, making the total annual dividend for the year to Rs71.8 per share.