Analyst Briefing: INDU blames the documentation drive for its dismal performance

November 11, 2019 (MLN): Indus Motor Company (INDU) held its analyst briefing on Friday, wherein it discussed the financial results for the quarter ended September 30, 2019, along with the future outlook of the company.

According to the details provided by Next Capital, the management of the company blamed the season-end for the dismal performance of the company in the latest quarter, and believed the sales might improve by the first half of next year.

With regards to gross margin, the management said that given a stable exchange rate, the company might be able to maintain its gross margins at current levels.

The management also threw some light on its administrative issues, stating that it was still using the same amount of manpower despite a substantial reduction in the production and capacity utilization.

The company, however, believed that its sales had gone up by 150 units after it joined hands with Bank Alfalah to create a successful campaign.

Contrary to what the majority believes, the management held that another major reason for the unstoppable, jeer-worthy performance of the company, besides high prices, was the ‘documentation drive which has instilled a fear factor’ within consumers.

On its future outlook, the management stated that the performance of the company might improve significantly if there were reversal in interest rates as well as normalization of tax issues.

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