Indus Motor Company (IMC) reported a profit of Rs 985.8 million in the second quarter ended December 31, 2019. This is in contrast to the earnings of Rs 3.4 billion in the same period of 2018, rendering a 71% decline, according to a company notice sent to Pakistan Stock Exchange (PSX).
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Earnings per Share, for the period under discussion came out at Rs 12.54 against Rs 43.31 in the corresponding period of the previous fiscal year. The company’s revenues in 2Q-FY20 declined by 47% year-on-year, with unit sales of 7,468 compared to 17,212 in 2Q-FY19.
According to a statement issued by IMC, combined sales of its completely knocked down (CKD) and completely built units (CBU), stood at just 14,453 units in the first half of FY20, down 56% from 33,087 units in the same period of previous year.
IMC says the decline was mainly due to increase in customs duty and levy of federal excise duty. It also stated that while the increase in interest rate reduced auto financing, the devaluation of the rupee was also a factor behind the decline in sales.