Indus Motor’s after-tax profit drops by 39pc

KARACHI: Indus Motor Company (IMC), the assemblers of Toyota vehicles in Pakistan, has reported after-tax profit of Rs9.66 billion in fiscal year 2022-23 (FY23), a decrease of 39 percent as compared with earnings of Rs15.8 billion in the same period of the last year, ARY News reported on Monday.

According to details, the board of directors of the assembler of Toyota vehicles in Pakistan met on August 25 to review the company’s financial and operational performance in the year ended June 30, 2023.

The Indus Motor Company witnessed a substantial drop of 39 percent in its after-tax profit in fiscal year 2022-23 (FY23). Meanwhile, earnings per share (EPS) stood at Rs123 in FY23 compared with Rs201 in FY22.

During FY23, the auto assembler posted revenue to the tune of Rs177.71 billion, as compared to Rs275.5 billion, a decline of 35%.

Moreover, the company said its vehicle sales fell to 31,602 units – a decrease of 58 percent as compared with sales of 75,611 units in the same period of the last year.

Similarly, Indus Motor’s finance cost increased significantly to Rs140.73 million in FY23, compared to Rs114.3 million in FY22, an increase of 23%.

During FY23, the company paid Rs7.13 billion in taxation, as compared to Rs9.65 billion, however, the effective tax rate was higher at over 42% in FY23 compared to ETR of 38% in FY22.

It is pertinent to mention here that Pakistan’s auto sector remains engulfed in various crises, with a number of automakers announcing complete or partial shutdowns in recent months citing various reasons.