The Board of Directors of Indus Motor Company Limited (IMC) released its financial results for the quarter and nine months ended March 31, 2021.
The Company’s combined sales of Complete Knocked Down (CKD) and Complete Built-up (CBU) units for the quarter ended March 31, 2021, increased by 48.3% to 16,626 units as against 11,209 units sold in the same quarter last year. Moreover, sales for the nine month period ended March 31, 2021, increased by 67.5% to 42,988 units as against 25,662 units sold in the same period last year.
The net sales turnover for the nine months ended March 31, 2021 increased by 73% to Rs. 131.16 billion as compared to Rs.75.83 billion in the same period last year, while profit after tax also increased by 69% to Rs.8.42 billion, as against Rs.4.98 billion achieved in the same period last year. The increase in turnover and profitability for the nine month period was mainly due to higher sales volume and increase in other income. The gross profit margin declined to 8.2% against 10.3% in the same period last year, mainly on account of increase in material cost.
Expressing his views, CEO IMC, Ali Asghar Jamali, said, “I am glad to see that business is returning to some state of normalcy. Infact, March 2021 saw the highest ever production levels at IMC, as a consequence of marked improvements in global supply chain.”
He further added, “IMC has always emphasized the ‘Make in Pakistan’ approach and appreciates the Government’s efforts to promote this policy. We request the Government to draw up the new Auto Policy 2021 – 2026 that encourages incentives to promote HEV technology in addition to incentives currently offered for Electric Vehicles, as well as localization that generates employment not only for OEMs, but for auto parts-makers as well.”
The Company’s Board of Directors declared an interim cash dividend of Rs.30 per share for the quarter, thus making the total dividend for the nine months ended March 31, 2021, Rs. 67 per share.