Pkrevenue.com

Tag: Indus Motors

  • Indus Motors rebuts plant shutdown reports

    Indus Motors rebuts plant shutdown reports

    KARACHI: Indus Motors Company Limited (IMC), the manufacturer of Toyota motors in Pakistan, on Wednesday strongly rebuts the news reports about complete shutdown of its plants.

    In a communication sent to Pakistan Stock Exchange (PSX), the company said IMC acknowledged the auto sector is facing unprecedented difficulties in its operations due to ongoing economic challenges and factors beyond the control of automobiles manufacturers.

    READ MORE: COVID-19 cases reported at Toyota work sites

    “The unprecedented devaluation of Pakistan Rupee (PKR), coupled with restrictions imposed by the State Bank of Pakistan (SBP) regarding prior LC approval for Completely Knocked Down (CKD) imports and continuing financing instability has radically impacted the auto industry,” the company said.

    The company clarified that as of today (July 27, 2022), there are no plans fixed for complete plant shutdown for more than two weeks in the month of August 2022.

    READ MORE: Hyundai, Kia sign pact to develop mobility to explore moon

    “The production schedule of the company and any non-production days remain contingent on a number of external and variable factors,” the company said.

    The company is actively monitoring its production and operations, and is closely working with the government and the SBP to alleviate the present challenges.

    The company in its communication said that in the event that there is any material update regarding the aforesaid matter, it will be timely communicated to the PSX as per the requirement of PSX regulations.

    READ MORE: Hyundai announces second quarter financial results

  • Indus Motors estimates 15% sales dip on PKR fall

    Indus Motors estimates 15% sales dip on PKR fall

    KARACHI: Indus Motors Company Limited has estimated up to 15 per cent decline in car sales this year due to massive depreciation in Pakistan Rupee (PKR) value.

    In a corporate briefing on Thursday, the Indus Motors informed that this year’s sales volumes remained impressive however, the company anticipates demand to receive a hit during 2022/2023 as an outcome of elevated interest rates, stringent auto financing conditions together with bloated Current Account Deficit; which will further exert pressure on exchange rate.

    READ MORE: Pakistan’s car sales surge 56% in eight months of FY22

    “Due to aforementioned reasons, the management is estimating sales volumes to take a dip of around 10-15 per cent. As a response to this, the company is currently operating on lower volumes,” according to analyst at Arif Habib Limited.

    Management deemed upcoming year to be tough for automotive industry. It expects cost pressure to continue going forward, mainly on the back of 4 to 5 times increase in freight costs during the year together with elevated commodity prices, increased FED/sales tax and currency depreciation.

    READ MORE: Pakistan’s car sales surge 61% in 7MFY22

    Together with this, the management expects delay in shipments and material shortages to keep the sales volume and profitability subdued.

    Highlighting the company’s financial performance management mentioned that during first half of the current fiscal year, the company’s sales volume increased by 47 per cent YoY to 38,632 units as compared to 26,362 units in same period last year (SPLY).

    READ MORE: Pakistan’s car sales up monthly highest ahead price hike

    During 1HFY22, sales revenue surged by 70 per cent YoY to PKR 135.2bn as compared to PKR 79.6bn in SPLY amid higher volumetric growth whilst the profit after tax increased to PKR 10,175mn (EPS: PKR 129.45), up 112 per cent YoY from PKR 4,801mn (EPS: PKR 61.08) during SPLY. The growth in profitability is an outcome of higher CKD and CBU sales together with higher other income, given higher return on investments.

    On a sequential basis, company’s profitability took a dip as an outcome of rising input cost, given substantial currency devaluation, and surging commodity prices.

    READ MORE: New rates of FED on local, imported motor vehicles

    While responding to the Q&A session, the management highlighted that the decline in sales volume during the month of Feb’ 22 was due to; i) production halts given the plant was shut down for one week for maintenance work and, ii) underutilization of plant capacity amid fewer working days during the month.

    The management hinted price hike of around 11-12 per cent, but not until June 2022.

    The management highlighted that the current month’s orders are booked up till June 2022 and that booking orders are hovering in between 4-4.5 months.

  • Indus Motors posts 195% growth in net profit to Rs5.42bn

    Indus Motors posts 195% growth in net profit to Rs5.42bn

    KARACHI: Indus Motor Company Limited has reported a remarkable 195% increase in net profit, reaching Rs5.42 billion for the quarter ended September 30, 2021, compared to Rs1.84 billion during the same period last year.

    (more…)
  • PM praises investment of Toyota Motors

    PM praises investment of Toyota Motors

    ISLAMABAD: Prime Minister Imran Khan on Wednesday praised Toyota Motors for investing $100 million for locally production of hybrid electric vehicles.

    (more…)
  • Indus Motors announces 152% growth in annual profit

    Indus Motors announces 152% growth in annual profit

    KARACHI: Indus Motor Company Limited on Friday announced 152 per cent increase in profit after tax for the year 2020/2021.

    The company declared Rs12.83 billion as profit after tax for the year 2020/2021 as compared with Rs5.08 billion in the preceding year.

    The company declared Rs163.21 as earnings per share for the year under review as compared with EPS Rs64.66 of the last year.

    Indus Motors announced Rs103.50 as dividend per share for the year as compared with Rs30 in the preceding year.

    According to analysts at Arif Habib Limited, Net sales of the company increased by 108 per cent YoY to Rs179 billion in FY21 attributable to volumetric growth of 102 per cent YoY to 57,236 units (Yaris 28,295 units, Corolla 18,355 units, Fortuner 3,543 units, Hilux 7,043 units) vs. 28,378 units (Corolla 22,140 units, Yaris 1,327 units, Fortuner 1,163 units, Hilux 3,748 units) in FY20.

    Revenue during 4QFY21 increased by 364 per cent YoY to Rs 48 billion. This is primarily owing to surge in sale of cars by 373 per cent YoY during 4QFY21 (14,566 vs. 3,078 units).

    Gross margins settled at 12.28 per cent in the quarter, up by 307bps QoQ due to appreciation of Rs against green back.

    Other income increased by 94 per cent YoY to Rs 1,686 million on account of significant jump in short term investment (government securities), and cash and bank balance.

    Effective tax rate during 4QFY21 was set at 30.75 per cent in contrast to 47.32 per cent in 4QFY20.

    Indus Motors posts 67% decline in half-year profit
  • Car manufacturers resume operation as lockdown eases

    Car manufacturers resume operation as lockdown eases

    KARACHI: Automobile industry has resumed manufacturing and administrative operations after the government eased lockdown.

    Honda Atlas and Indus Motors on Tuesday informed Pakistan Stock Exchange (PSX) about resumption of their manufacturing operations.

    The Indus Motors Company in its letter said:

    “With reference to our earlier disclosure of material information dated 27 March 2020, relating to the temporary suspension of plant operations of the Company due to outbreak of the COVID-19 in the country.

    “The management of the Company according to relaxation/approval given by the Sindh Government has decided to resume plant operations and its offices with adequate measures aimed at preventing the pandemic’s spread.”

    Similarly, Honda Atlas Cars (Pakistan) Limited in its letter said:

    “In view of the relaxation allowed to automobile Industry from the current situation of lockdown due to COVID-19, by the Authorities, Honda Atlas Cars (Pakistan) Limited has resumed its operations from May 19, 2020 with all precautionary measures aimed at preventing pandemics spread.”

  • Car sales come down by 44% in eight months

    Car sales come down by 44% in eight months

    KARACHI: The domestic car sales have declined by 44 percent during first eight months of current fiscal year owing to higher prices and economic slowdown.

    According to data released on Wednesday by Pakistan Automotive Manufacturers Association (PAMA), the total car sales declined to 90,834 units during July – February 2019/2020 as compared with 162,240 units in the corresponding period of the last fiscal year.

    Market experts attributed the decline to higher car prices and unattractive high interest rate. Besides the slowdown in economy is another major reason.

    The sales of Honda Car fell by 61 percent to 12,497 units during first eight months of current fiscal year as compared with 32,077 units in the corresponding period of the last fiscal year.

    The sales of Indus Motors fell by 49 percent to 22,707 units during the period under review as compared with 44,409 units in the same period of the last fiscal year.

    The sales of Pakistan Suzuki fell by 35 percent to 55,630 units during July – February 2019/2020 as compared with 85,754 units in the corresponding period of the last fiscal year.

    Pakistan’s car sales increased by 2 percent MoM in February 2020; led by 12 percent MoM rise in sales of Indus Motor (INDU).

    Pak Suzuki Motor (PSMC) and Honda Car (HCAR) both witnessed decline in sales by 3 percent MoM each.

  • Indus Motors posts 67% decline in half-year profit

    Indus Motors posts 67% decline in half-year profit

    KARACHI: Indus Motors Company Limited on Wednesday declared massive 67 percent decline in net profit for six-month period ended December 31, 2019.

    According to financial results announced by Indus Motors, the company declared Rs2.3 billion profit after tax for the half year ended December 31, 2019 as compared with Rs6.91 billion in the corresponding half in the preceding year.

    The company declared earning per shares of Rs29.32 for the period as compared with EPS of Rs87.94 in the same period of the preceding year.

    The company declared gross profit of Rs3.76 billion for six month period, which fell by 62.6 percent when compared with Rs10.05 billion in the corresponding period of the last year.

    The expenses of the company increased by 14.28 percent to Rs1.52 billion for half year ended December 31, 2019 as compared with Rs1.33 billion in the same period of the last year.

    Revenue from contracts with customers has declined 44 percent to Rs42.77 billion during the period under review as compared with Rs76.44 billion in the corresponding period of the last fiscal year.

    Cost of sales also came down to Rs39 billion for the half year ended December 31, 2019 as c compared with Rs66.39 billion in the corresponding half of the last year.

  • Car sales decline by 45% in seven months

    Car sales decline by 45% in seven months

    KARACHI – The car sales in Pakistan witnessed a significant decline during the first seven months (July–January) of the fiscal year 2019–2020, as total sales of locally assembled vehicles fell by 45 percent.

    (more…)
  • Car sales slump by 44% in first half

    Car sales slump by 44% in first half

    KARACHI: Car sales have slumped by 44 percent to 67,019 units in first half (July – December) of fiscal year 2019/2020 as compared with 120,066 units in the corresponding half of the last fiscal year.

    Major drop witnessed in the sales of Honda Cars which fell 66 percent to 8,146 units during first six months of current fiscal year as compared with 24,278 units in the same period of the last fiscal year.

    It was followed by sales of Indus Motors which fell by 57 percent to 14,175 units in first half of current fiscal year as compared with 32,631 units in the corresponding period of the last fiscal year.

    The sales of Pak Suzuki Motors witnessed decline of 27 percent to 44,698 units during the period under review as compared with 63,157 units in the corresponding period of the last fiscal year.

    Analysts at Topline Securities said that overall Pakistan car sales jumped by 23 percent MoM to 12,069 units in December 2019, however the rise was largely led by 49 percent MoM increase in sales of Pak Suzuki Motor Company (PSMC).

    The other two major manufacturers, Indus Motor (INDU) and Honda Car (HCAR) sales dropped by 12 percent MoM and 23 percent MoM, respectively.

    The increase in sales of PSMC was largely driven by the announcement of increase in car prices by the manufacturer in mid of December 2019, which was effective from January 1, 2020.

    The decline reported by the other manufacturers was largely in line with the historical year-end phenomenon, where consumers generally delay their purchases until the new year.

    On a YoY basis, weak demand dynamics was again evident from a 38 percent YoY fall in sales in December 2019, taking 1HFY20 decline to 44 percent YoY.

    This is primarily attributable to 1) higher car prices mainly due to PKR devaluation and 2) higher interest rates.

    PSMC sales were down 26 percent YoY in December 2019, while INDU’s sales declined by 56 percent YoY with Corolla sales falling by 50 percent YoY.

    HCAR sales fell by 58 percent YoY during Dec-2019 with combined sales of City & Civic declining by 56 percent YoY.

    Sale of motorcycles by Atlas Honda (ATLH) witnessed an increase of 6 percent YoY as sales clocked in at 85k units, however it recorded a decline of 11 percent MoM.

    Tractor sales recorded a growth of 75 percent YoY with Millat Tractor (MTL) sales rising by 175 percent YoY. On the MoM basis, overall tractor sales were down 37 percent MoM.

    Analysts expect recovery in car sales volumes from start of 2020 as we believe volumes would have bottomed out in December 2019.