Indus Motor Company (IMC) witnessed a 20% decline in profit to Rs 2.67 billion for the quarter ended 31st March 2020 in wake of reduced sales. The company had reported earnings of Rs 3.34 billion in the same period of 2019, according to a notice sent to the Pakistan Stock Exchange (PSX) on Friday.
The decline in sales came on back of lower sales as IMC recorded 11,125 units sold in the third quarter of this fiscal year compared to 16,935 units in the corresponding period of previous year. With this, net sales of the company fell 20.4% to Rs 33.1 billion in the three-month period of 2020 compared to Rs 41.5 billion in the same period of the previous year.
However, for the outgoing quarter, total unit sales recorded significant growth of 49% on quarter-on-quarter basis, mainly due to the New Year effect and multiple promotions and discounts offered on 1.3L variants by the company.
Meanwhile, other income increased from Rs 1.06 billion in Jan-Mar period of last year to Rs 1.11 billion in the same quarter of current year. On the other hand, finance cost of the company increased by 25.7% to Rs 16.25 million in the three month period under review. Share price of Indus Motor Company rose Rs 25.08 or 2.87% to trade at Rs 899.24 with a turnover of 39,300 shares at the PSX.