Indus Motor turnover, profitability down in Sept-2020 quarter.

No doubt, Indus Motor Company (IMC) stood still in playing a major role in the development of the entire value chain of the local auto industry. It is also proud to have contributed in poverty alleviation at the grass root level by nurturing localization.

This, in turn, has directly created thousands of job opportunities and transferred technology to over 46 vendors supplying parts. The Company is also a major tax payer and significant contributor to the Government's exchequer. The financial experts of the IMC calculated during quarter and nine months ended March 31, 2020, that IMC's combined sales of CKD and CBU vehicles for the quarter ended March 31, 2020, declined by 35 percent, to 11,209 units as compared to 17,094 units sold in the corresponding quarter previous year.

Furthermore, sales for the nine months period ended March 31, 2020, declined by 49 percent, to 25,662 units as compared to 50,181 units sold in the corresponding period last year. Accordingly, the market share of locally manufactured PC and LCV vehicles for the nine months period reached at 26 percent. Owing to reduced demand, the Company produced 25,982 units for the nine months period, as against to 50,241 units produced in the corresponding period previous year.

The net sales turnover for the nine months ended March 31, 2020 declined by 36 percent to Rs. 75.83 billion as against to 117.98 billion in the corresponding period previous year, while profit-after-tax also declined by 51 percent to Rs. 4.98 billion, as compared to Rs. 10.26 billion attained in the corresponding period previous year.

The financial experts of Indus Motors also calculated that the fall in turnover and profitability for the nine months period was mainly because of lower CKD and CBU volumes. In contrast with previous quarters this fiscal year, demand for the Company's vehicles slightly enhanced in the current quarter commencing January 2020, thereby enhancing the profitability for the current quarter. The increased demand is attributable to the new year buying phenomenon and continued marketing efforts through the Company.

However, volumes still remained lower as against the corresponding quarter last year. During this quarter, the management of IMC almost completely sold out the Corolla 1.3L vehicle, which performed as a market leader in the segment for over 25 years and was discontinued in March 2020. The flagship Corolla brand will continue with vehicles in 1.6L and 1.8L segments, as available...