Indus Motor’s after-tax profit drops by 72%
Automaker earned Rs1.3 billion in quarter ended Dec 2022
Indus Motor Company (IMC), the assemblers of Toyota vehicles in Pakistan, has reported an after-tax profit of Rs1.33 billion for the second quarter of financial year 2022-23, a decrease of 72% as compared with earnings of Rs4.75 billion in the same period of last year.
Earnings per share (EPS) stood at Rs16.93 compared with Rs60.43 in the previous year. The board of directors met on February 10 to review the company’s financial and operational performance in the first half ended December 31, 2022.
Along with the result, IMC declared an interim cash dividend of Rs10.2 per share. It has already paid the first interim cash dividend of Rs8.2 per share.
Revenue from net sales of the automaker decreased by 29% from Rs69.63 billion last year to Rs49.58 billion in Oct-Dec 2022.
AKD Securities stated in its report “although effective sale prices are higher, volumes have shrunk to half of the 19,426 units sold in 2QFY22”.
IMC faced a gross loss of Rs491 million during 2QFY23 in comparison to a gross profit of Rs5.26 billion in the same period of last year.
“Cost pressures, especially the currency devaluation, outweighed the impact of price hikes and increased volumetric sales,” said a review done by Ismail Iqbal Securities.
On a positive note, the automaker’s other income jumped by 38% from Rs2.5 billion last year to Rs3.4 billion in 2QFY23.
Last week, the company announced the shutdown of its plant from February 1 to February 14 due to inventory shortage and after resuming production on February 15, it would only operate a single shift until further notice.