Indus Motor Company profit rises 90pc to Rs5.9bn

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Indus Motor Company profitIndus Motor Company profit-after-tax rose 90.32 per cent to Rs5.9 billion for the half year ended Dec 31, 2015 from Rs3.1bn earned in the same period last year.

The board also announced a second-interim dividend of Rs20 per share, taking the cumulative July-December 2015-16 payout to Rs40 per share.

Net sales revenue grew 31.54pc year-on-year to Rs51.3bn from Rs39bn.

“The increase in both revenues and profits is mainly attributable to the higher sales volumes and margins and tighter control on fixed costs,” the company said in a statement.

The combined (CKD and CBU) sales for the first half of 2015-16 increased by 34pc to 30,896 units from 23,081 units sold last year.

The production of passenger cars and light commercial vehicles stood at 30,474 units, which was up 31.23pc over 23,221 units produced in the same period last year.

Indus Motor Company CEO Parvez Ghias stated that improved macroeconomic environment with historic low inflation and interest rates, availability of auto financing, stability in the retail selling prices of CKD vehicles and drop in fuel prices, all contributed to upbeat customer sentiments and robust demand.

Analysts at brokerage Arif Habib Limited commented that revenues of the company escalated by 7pc quarter-on-quarter in October-December 2015-16, on the back of Corolla and Hilux sales which rose by 5pc and 30pc, respectively.

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