IMC posts Rs.5.9bn profit for first half

Karachi: The Board of Directors of Indus Motor Company Limited, met on February 25, 2016 to review the financial results for the half year ended December 31, 2015.

The combined (CKD and CBU) sales for the first half of FY 2015-16 increased by 34% to 30,896 units as against 23,081 units sold last year. The production of passenger cars (PC) and light commercial vehicles (LCV) for the half year stood at 30,474units, which is up 31% over 23,221 units produced during the corresponding period last year.

The Company’s net sales revenue and profit after tax for the first half of the year 2015-16 was Rs 51.3 billion and Rs 5.9 billion respectively as compared to Rs 39.1 billion and Rs 3.1 billion respectively for the same period last year. The increase in both revenues and profits is mainly attributable to the higher sales volumes and margins and tighter control on fixed costs.

Based on the results of the company, the Board of Directors of IMC has declared a second interim dividend of Rs 20 per share for the half year ended December 31, 2015. – End

IMC CEO Parvez Ghias said, “Improved macroeconomic environment with historic lows of inflation and interest rates, availability of auto financing, stability in the retail selling prices of CKD vehicles and drop in fuel prices, all contributed to upbeat customer sentiments and robust demand. In order to fulfil the growing market appetite for new vehicles and reduce vehicle delivery time cycle, the Company operated its manufacturing facilities at full capacity including working daily overtime hours and off Saturdays to achieve the record production. Our efforts to facilitate customers have enabled us to achieve a new milestone of 65,000 units of sales during calendar year 2015”, he added.