Indus Motor Company Limited (IMC) profit up by 81pc

Tuesday, April 24, 2012

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KARACHI: The profit-after-tax of Indus Motor Company Limited (IMC) rose by 81 percent to Rs2.89 billion in the nine-month period ended on March 31 from Rs1.60 billion earned in corresponding period last year.

This translated into earning per share of Rs36.82 from Rs20.39 in 2011, according to profit and loss account of the company available with Karachi Stock Exchange.

Nauman Khan, an automobile sector analyst, said that the increase in unit price drove the net earning to this high level, as the volumetric sales depicted a subdued growth.

Rise in the unit price more than compensated the increase in cost pressure and rendered into higher gross margins. The gross margins improved by 243 basis points to 7.9 percent in under review period against 5.5 percent in the same period last year, he added.

Furthermore, 20 percent rise in company’s other income to Rs1.34 billion as against Rs1.10 billion in the same period last year also played its due role in strengthening company’s profitability, he observed.
Alone in the quarter ended on March 31 the company posted a net profit of Rs1.12 billion (EPS of Rs14.35) from Rs695 million (EPS Rs8.84) in same quarter in 2011.