Compan­y suffer­s a huge hit on gross margin­sKARACHI: Despite repeated hikes in prices of passenger cars due to multiple rounds of rupee depreciation, Indus Motor Company’s (IMC) profit fell 10% to Rs3.4 billion in the October-December quarter of financial year 2018-19. The automaker had reported a profit of Rs3.7 billion in the same period of previous fiscal year. Unit sales swelled 14% in Oct-Dec 2018 against the same period of previous year. “Historically, we have noted that margins of the automobile sector receive a hit whenever the rupee depreciates,” stated the analyst. On a half-yearly basis, the company posted a decline of 6.5% in profit, which amounted to Rs7 billion in Jul-Dec 2018 compared to Rs7.4 billion in the same period of previous year.

Source: The Express Tribune February 26, 2019 03:11 UTC