Indus Motor FY16 profit up 26 percent

Indus Motor Company Ltd (INDU) on Friday said its full year net profit increased 26 percent on account of high sales.

In its profit and loss statement sent to the Pakistan Stock Exchange (PSX), Indus Motor declared profits of Rs11.45 billion for the year ended June 30, 2016, up against Rs9.11 billion during the same period of FY15.

The company also announced a final cash dividend of Rs40 a share. This is in addition to combined interim dividends already paid at Rs60 for three quarters.  Indus Motor posted earnings per share of Rs145.74 during this period against Rs115.91 last year.

Net sales of the company were posted at Rs108.75 billion as compared to Rs96.51 billion in the corresponding period last year. Cost of sales remained Rs91.02 billion as compared to Rs82.27 billion. The company earned gross profit of Rs17.73 billion as against Rs14.24 billion.

Total other expenses remained Rs2.13 billion against Rs1.91 billion. It earned Rs3.16 billion from other income against Rs2.90 billion last year.

According to a spokesman of the Indus Motors, the increase in earnings is mainly attributable to an additional sales volume of 7,197 units, improvement in operational efficiencies and tighter control over fixed costs.

The combined sales of Toyota CKD (complete knock down) and CBU (complete build up) vehicles registered a growth of 13 percent to 64,584 units, compared to 57,387 units sold last year. The sales volume achieved during the year is a new record and resulted in 30 percent market share for FY 2015-16. The company also set a new production record of 64,096 units compared to 56,888 units achieved last year.

In passenger car category, the Corolla sales grew by 12 percent, to 57,452 units compared to 51,398 units sold last year, all time high volume given the first full year of new model launch.

The combined sales of Hilux in light commercial vehicle category grew by 23 percent to 5,923 units compared to 4,823 units sold last year. However, due to influx of imported used SUVs enjoying extraordinary duty and tax concessions, the demand for locally manufactured Toyota Fortuner remained restricted to 602 units compared to 722 units sold last year.