Indus Motor Company (IMC) has maintained a handsome profit growth of 19 percent in the quarter of July to September 2017, mainly due to the increase in sales of its flagship car, Toyota Corolla, and Toyota Fortuner.
According to the financial results, the company made a profit of Rs. 3.62 billion in the first quarter of 2017-18 compared to Rs. 3.04 billion in the corresponding period last year.
Besides sales of the cars, the company hiked the prices of its different models at the start of the quarter by up to Rs. 160,000, which also caused growth in its revenues and profitability.
The shareholders of the company are very happy with the financial performance of the company, which again announced 300 percent (Rs. 30 per share) interim dividend for its shareholders at the end of the first quarter of 2017-18. The earning per share also grew to Rs. 46.17 from Rs. 38.77.
Sales of Toyota Brands
According to the data from Pakistan Automobile Manufacturers Association (PAMA), IMC sold 12,765 units of Toyota Corolla in the period of July to September 2017, which shows that its sales are 110 units higher than same period of last year for this particularly model.
Toyota Fortuner witnessed impressive growth in sales and demand as the company sold 792 units in the period of July to September, which shows an increase in sales of 647 units compare to last year.
Toyota Hilux sales witnessed a slight drop this year. IMC sold 1,530 units in the July to September compared to 1,585 units sales last year, witnessing a drop of 55 units in the sales of this model.
The sales of Toyota brands including, Corolla, Fortuner and Hilux, will continue to retain high demand and sales in the local market, particularly after leverage of the recent imposition of Regulatory Duties on passenger cars and strict conditions of imports for SUV and vehicles above 1800 CC engine capacity.
The delays in deliveries of the vehicles will remain a key issue until the production capacity of the plants is not brought on par with the growth of local demand. Ultimately, the menace of malpractice will prevail in the local market and customers will continue to pay extra money to the local dealers for the purchases.