Karachi, April 29, 2024 – Indus Motor Company (IMC), one of the leading automakers in Pakistan, has announced a remarkable 61% increase in its profits after tax for the nine-month period ending March 31, 2024, reaching Rs 9.41 billion, up from Rs 5.84 billion in the same period last year.
This increase comes despite a significant downturn in net sales and production volumes.
The company reported a net sales turnover of Rs 98.23 billion, a stark decrease from Rs 135.03 billion recorded during the same period last year. Sales of Completely Knocked Down (CKD) and Completely Built-Up (CBU) units plummeted by 47%, with only 13,922 units sold compared to 26,055 units in the prior year. Additionally, vehicle production saw a 51% reduction, with just 13,217 vehicles manufactured, down from 26,848 units.
Ali Asghar Jamali, CEO of IMC, highlighted the difficulties faced by the automotive sector, particularly due to increased imports of used cars and escalating duties and taxes amid worsening economic conditions. “With plummeting customer demand, it’s been a tough nine months,” Jamali stated. He emphasized the critical need for government intervention to stabilize and boost the auto industry’s volumes in the coming months. Jamali also appealed for continued support for policies encouraging investment and promoting a greener environment, such as the incentives under the Automotive Industry Development and Export Plan (AIDEP) 2021-2026.
Despite these challenges, IMC has managed to sustain its profitability, which is reflected in its Earnings Per Share (EPS) that surged to Rs 119.67 from Rs 74.35 in the corresponding period last year. The company’s Board of Directors has declared a third interim cash dividend of Rs 34 per share for the period, showing a significant increase from the Rs 24.40 per share declared last year.
IMC’s commitment to corporate social responsibility and environmental sustainability was also recognized during this period. The company received accolades from The Professionals Network (TPN) for “Clean Energy Transition” and “Community Impact.” Additionally, The National Forum for Environmental & Health (NFEH) honored IMC for its CSR initiatives. The Federal Board of Revenue awarded the company the “Compliant Corporate Taxpayer” award, which was presented to CEO Ali Asghar Jamali by Prime Minister Shahbaz Sharif in Islamabad.
The contrasting results—increased profitability against reduced sales and production—underline the complex environment in which Indus Motor operates. The company’s success in maintaining high profit margins amidst these adversities showcases robust strategic management and operational efficiency.
Industry experts suggest that the company’s performance could serve as a bellwether for the auto industry’s resilience and potential recovery pathways amidst economic headwinds. They also highlight the importance of sustained government support to ensure the sector’s growth and contribution to the national economy.
As the financial year progresses, all eyes will be on how Indus Motor and the broader automotive industry navigate the challenges of high operational costs, regulatory pressures, and fluctuating market demands, while continuing to innovate and contribute positively to Pakistan’s economic landscape.
