LAHORE - The Indus Motor Company Limited has reported a profit after tax of Rs1.1 billion for the first quarter of the financial year 2014-15. The profit is up 28% from Rs 0.9 billion achieved for the same quarter in FY2013-14. The company’s sales revenue from CKD, CBU and spare parts business grew 21% to Rs 17.3 billion compared to Rs 14.3 billion achieved for the same period last year. The combined sale of Toyota and Daihatsu brand CKD and CBU products grew 17% to 9,975 units as compared to 8,537 units sold during the corresponding period in FY2013-14.
The company’s production of PC and LCV for the quarter was up 22% to 9,998 units compared to 8,173 units produced in the same period last year. The reversal of 10% Federal Excise Duty (FED) on Fortuner SUV imposed in 2013 also contributed to the volume increase and helped in increase of company’s combined market share from 26% to 31%.
CEO IMC Parvez Ghias said the profit was mainly on account of higher sales, increase in treasury income and tighter control on fixed costs. “Strong demand for the new generation Corolla, launched in July, enabled the company to outperform the industry. The countrywide response to new generation Corolla offering cutting edge design and features has been overwhelming,” he added.
The industry overall demand for passenger cars and light commercial vehicles in the country declined 3% to 31,899 units compared to 32,841 units sold for the same period last year. “The stagnant state of economy and imported used cars are continuing to hurt the industry and more needs to be done by way of enhancement of concessionary duties and low valuations to safeguard major investments of OEMs and parts suppliers,” he added.
He pins hope on new auto policy and expects that the government would support the local auto industry by coming up with a growth oriented policy at its earliest. “The menace of power shortages, poor governance and law and order eroding the country’s competitive advantage. It is essential these issues be tangibly addressed on priority to restore investor confidence and achieve efficiency,” he added.