KARACHI: Despite having orders for the next four months, Indus Motor Company (IMC) is operating at 40-45 per cent production capacity.
Listing factors for lower capacity utilisation at a corporate briefing session held on Tuesday to discuss its financial results for FY22, the assembler of Toyota vehicles feared at least 40pc decline in volumetric sales in FY23 due to higher car prices, hike in interest rates, strict auto financing rules, recent floods and restrictions on CKD imports.
Topline Securities said that IMC Pakistan car sales increased by 51pc year-on-year to 379,350 units in FY22 out of which Indus car sales clocked in at 75,611 units, up 31pc.
With regards to the recently announced refund policy, the IMC management informed the analysts that around 800-1,000 clients have cancelled their bookings and got their cash back with markup.
Advances and loans from customers and dealers soared to Rs112bn in FY22 from Rs51bn in FY21, according to the annual report.
Net sales increased by 54pc to Rs276bn from Rs179bn in FY21 while profit after tax only increased by 23pc to Rs15.8bn from Rs12.8bn due to rupee devaluation and imposition of super tax.
Published in Dawn, September 28th, 2022