Board of directors of Indus Motor Company Limited met on February 22, 2012 to review the company’s financial and operating performance for the half year ended December 31, 2011. As per the statement issued, automotive industry had to face many challenges during the fiscal year 2012, which includes managing severe supply disruption due to Thai floods, together with steep rupee devaluation, increased cost pressures due to energy shortages and influx of used cars.
Commenting on the results, the spokesperson said during the half year, company’s sales grew by 6.3 per cent to 24,341 units compared to 22,903 units sold for the same period last year. Correspondingly, the production also increased by 3.5 per cent to 24,316 units as against 23,482 produced in the same period last year. The company’s combined sales revenue for CKD, CBU and parts business amounted to Rs33 billion and the profit after tax stood at Rs1.77 billion on account of increased sales volume and cost efficiency. Commenting on quarterly performance, spokesperson said, “Going forward the challenges for auto industry will be, rupee depreciation and resultant cost pressures, expiry of AIDP, correction in commodity prices which may impact rural buying, impact of ban on CNG cylinders and conversion kits imports and influx of imported used cars. The company will remain focused on improving its operational efficiencies to counter these challenges and deliver maximum value to its customers.”
The Board of directors also announced interim dividend of Rs8 per share for the half year ended December 2011.
