lnuuS MC1C8 CCMAn?

Changes ln flscal and moneLary pollcles have bode well for lndus MoLor Company whlch posLed a C1 LS
of 8s 1193 (C1 2010 8s 733) deplcLlng an lncrease of 62 1he managemenL of lMC aLLrlbuLes a large
parL of lLs lmproved performance Lo deferred buylng by Lhe cusLomers who Look advanLage of
reducLlon ln CS1 and SLu" lL may be menLloned here LhaL Speclal Lxclse uuLy (SLu) whlch was
lncreased Lo 23 percenL ln March 2011 has been removed compleLely Ceneral Sales 1ax (CS1) on car
auLomoblle sales has been decllned by one percenL from 17 percenL Lo 16 percenL 1he perlod also
wlLnessed loosenlng of moneLary pollcy wlLh Lhe cenLral bank announclng a 200 basls polnL decrease ln
dlscounL raLe Lo 12
lMC's neL Sales lncreased by 20 Lo sLand aL 8s 1713 bllllon as compared Lo 8s 1434 bllllon ln Lhe
correspondlng perlod lasL year 1he company's efflclency also lmproved durlng Lhe perlod under revlew
wlLh C L8l1 and neL roflL marglns reachlng 732 830 and 330 respecLlvely (2010 618
700 and 402) llnance cosLs also decreased by 71 Lo 8s 16 mllllon
Cne of Lhe ma[or facLors behlnd Lhe company's lncrease ln proflLablllLy desplLe lncreased cosLs ln Lhe
form of k8 depreclaLlon dlsrupLlon of global auLo supply chaln has been lLs ablllLy Lo pass on Lhese
hlkes Lo Lhe consumer 8ecenL governmenL announcemenLs of relaxaLlon of enLry and Larlff barrlers
especlally wlLh regard Lo Lrade llberallzaLlon wlLh lndla may however ralse uncerLalnLy over Lhe
company's ablllLy Lo keep followlng Lhls pollcy 1hls ls ever more lmporLanL ln Lhe conLexL of floodlng ln
1halland and Lhe expecLed conLlnuaLlon of k8 depreclaLlon
Colng forward Lhls analysL belleves LhaL Lhe challenges menLloned above are noL lnsurmounLable
especlally when vlewed ln Lhe conLexL of Lhe company's lmproved efflclency expecLed conLlnuaLlon of
moneLary loosenlng replacemenL of currenL AuLo lndusLry uevelopmenL rogram ln 2012 and sLable
commodlLy prlces We expecL lMC Lo achleve LS of 8s 3490 ln 201112