KARACHI – In the financial year 2022-23, Indus Motor Company Limited (IMC) posted a profit after tax of Rs 9.66 billion, down 39% from the previous year’s achievement of Rs 15.8 billion.
For the financial year ending June 30, 2023, sales of CKD and CBU vehicles fell 58% to 31,602 units from 75,611 units sold last year.
The company produced 32,696 units for the year, down significantly from 72,438 units produced last year.
Net revenue for fiscal year 2022-2023 fell 36% to Rs 177.71 billion from Rs 275.5 billion in the same period last year. In addition, after-tax profit fell 39% to 9.66 billion rupees from 15.80 billion rupees last year. The decline in revenue and profit was mainly due to lower sales of CKD and CBU vehicles, due to import restrictions and slumping demand.
Profitability during the year also decreased due to the increase in input costs, mainly due to the strong depreciation of the PKR against the USD and the high impact of inflation.
The negative impact on net profit is partially offset by a higher return on investment due to higher interest rates.
Ali Asghar Jamali, CEO of IMC, commented: “In the current circumstances, the auto industry in Pakistan is facing the worst economic recession in history. During the year, local and global disruptions as well as restrictions on the import of CKD kits resulted in factory closures, affecting employment in the industry.
The cumulative effect of currency devaluation, soaring inflation, rising interest rates, and rising tariffs have forced the industry to raise the price of cars, out of reach of customers, leading to a further decline in demand.
Based on the results, the board announced a final cash dividend of Rs 29 per share, bringing the total annual dividend for the year to Rs 71.8 per share.