Indus Motor Company (IMC) released its financial results for the quarter ended September 30, 2020. The company’s combined sales of complete knocked down (CKD) and complete built-up (CBU) units for the quarter increased by 73% to 11,809 units against 6,839 units sold in the same period last year. IMC’s market share stood at approximately 27% during the first quarter of this fiscal year.
The company’s net sales turnover for the quarter increased by 65% to Rs 34.19 billion compared to Rs 20.72 billion in the same period last year; while profit after tax increased by 40% to Rs 1.85 billion against Rs 1.32 billion attained in the same period last year. The increase in turnover and profitability for the three-month period was primarily due to higher CKD and CBU volumes, and increased other income due to improved cash flows, however, due to the depreciation of Pak Rupee and absorption of costs, the gross margin of the company reduced to 6.7% against 9.7% in same period last year.
The overwhelming response received for Toyota Yaris also led to volume increase. IMC has managed to sell more than 6,000 units of the newly launched sedan during this quarter despite slowdown in economic activities which are gradually pacing up after the ease in COVID-19 lockdowns in August. Yaris is currently the second bestselling car in the market behind Suzuki Alto 660cc. The company has also recently introduced the manual version of Toyota Corolla Altis 1.6 which is consistent with IMC’s policy of providing customers with a diverse variety of options.
Commenting on the performance, IMC CEO Ali Asghar Jamali said:
“We would like to appreciate our customers for their continued loyalty towards our products as well as acknowledging the tremendous and dedicated efforts of our staff, vendors, dealers, business partners and the entire Indus team during these challenging times.”
He added that IMC look forward towards continued support as it moved ahead with an expectation of the revival of economic activities and improved business activities in coming months.