September 19, 2019 (MLN): Indus Motor Company Limited (INDU) is slated to hold its corporate briefing for the financial results for the year ended June 30, 2019, on September 24, 2019, to discuss and address issues that directly, or indirectly impacted the performance of the company.
To recall, the company had posted net earnings of Rs. 13.7 billion (EPS: Rs. 174.5) for the year ended on June 30, 2019, which were 13% lower than that of last year. The comparatives provided in the official document revealed that the decline wasn’t caused by adverse changes in sales revenue, but policies that were outside of company’s control.
This was in fact, confirmed by the management of the company itself, as it out rightly blamed several government policies and approaches for the jeer worthy performance of not just the company, but the entire automobile industry.
In the director’s report of the company, the management stated that significant and frequent changes in government policies pertaining to sale of vehicles to non-filers and Federal Excise Duty had proved to be counter-productive to mid-term and long-term planning, and had significantly impacted the confidence of both domestic and international investors.
With regards to the company’s controversial routine of increasing prices, the management said that the cumulative effect of abrupt changes in state policies and increase in the additional customs duties from 2% to 7%, devaluation and Excise Duty had forced the automobile companies to make unprecedented increases in prices.
However, company lauded the government for clamping down on the illegal and undocumented imports of used vehicles, and urged the Government to sustain these measures.
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