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WEEKLY
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| Indus Motor’s earnings drop |
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Wednesday, September 30, 2009
By our correspondent
KARACHI: Indus Motor Company has announced the company’s earnings fell to Rs1.38 billion in financial year 2008-09 compared to Rs2.29 billion earned last year. Earning per share (EPS) stood at Rs17.62 versus Rs29.15.
The company declared a cash dividend of Rs10 per share (100 per cent) for the year ended June 30, 2009. Though the assemblers increased car prices, it proved insufficient to fully offset declining sales. Net sales dropped by 8.59pc year-on-year.
The decline in earnings was due to low car sales and an increase in the cost of production. Even though car prices increased by 35 per cent on average, inflated cost of production, 20 per cent rupee depreciation and high steel prices, dragged down earnings of the company.
Moreover, other income, which is another major source of proceeds for the company, also dropped and stood at Rs2 billion as compared to Rs3.5 billion last year. Furthermore, higher administrative expenses, which were up by 18.48 per cent, along with an increase in financial charges also dampened its earnings.
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ISSN 1563-9479 
