Karachi: Indus Motor Company (IMC) booked profits of Rs1.8 billion in first half of the current financial year (1HFY12), up 95 percent a year-on-year.
The major reasons for growth in the company’s earnings are net sales rising by 23 percent in year-on-year terms because of higher unit sales and increased prices that improved gross margins at 7.5 percent versus 5.1 percent in the corresponding period last year.
However on a Quarter-on-Quarter basis, the company’s profitability is down by 12 percent due to decline in earnings from lower unit sales due to seasonality and loss in other income by 26 percent QoQ.
The Board of Directors of Indus Motor Company (IMC) Limited Wednesday said its half yearly sales revenue for CKD, CBU & Parts business amounted to Rs 33 billion and the profit after tax stood at Rs 1.77 billion on account of increased sales volume and cost efficiencies.
Commenting on the results the spokesperson said that, during half year company’s sales grew by 6.3% to 24,341 units compared to 22,903 units sold for the same period last year. Correspondingly the production also increased by 3.5% to 24,316 units as against 23,482 produced in the same period last year. The company’s combined sales revenue for CKD, CBU & Parts business amounted to Rs 33 billion and the profit after tax stood at Rs 1.77 billion on account of increased sales volume and cost efficiencies.
Commenting on quarterly performance, spokesperson said, “Going forward the challenges for auto industry will be depreciating rupee and resultant cost pressures, expiry of AIDP, correction in commodity prices which may impact rural buying, impact of ban on CNG cylinders & conversion kits imports and influx of imported used cars. The company will remain focused on improving its operational efficiencies to counter these challenges and deliver maximum value to its customers”.
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