The assembler of Toyota vehicles in Pakistan, Indus Motor Company (IMC), announced a 39% decline in net profit for the current financial year that ended on June 30, 2023.
The company believes diminishing demand of four-wheelers, rupee devaluation and skyrocketing cost of car financing are responsible for the decline in profit.
The company’s profit after 39% drop stands at Rs9.66 billion as compared to Rs 15.80 billion in the financial year 2022 (FY22).
According to the IMC’s profit and loss accounts, this loss could have been more had the company not take timely smart investment decisions. The investment in high-return schemes acted as a buffer against the dwindling demand of vehicles and slowed production.
The per share earnings of IMC is recorded at Rs 122.96 for the FY23 as compared to Rs 201.04 last year. Despite the loss, the company has announced a cash dividend of Rs 29 per share this year.
The IMC issued a press release stating that the sales of completely built units (CBU) and completely knocked down units (CKD) was dropped by 58%, and only 31,602 units were sold in FY23 as compared to the sale of 72,438 units last year.
Ali Asghar Jamali, IMC CEO said,“The automobile industry in Pakistan is facing the worst-ever economic downturn due to prevailing circumstances. Global disruptions, import restrictions on CKD kits, and demand contraction have led to plant closures, impacting industry employment.”
Topics #Altis #IMC #Indus Motor Company #Toyota
