Karachi, October 28, 2024 – Indus Motor Company Limited, the official assembler of Toyota vehicles in Pakistan, has reported a robust 58% increase in net profit for the quarter ending September 2024, fueled by a significant boost in revenue from customer contracts.
The financial results, shared with the Pakistan Stock Exchange (PSX) on Monday, highlight an after-tax profit of Rs 5.09 billion, up from Rs 3.22 billion in the same quarter last year.
The company’s earnings per share (EPS) also rose sharply, reaching Rs 64.77, a substantial improvement over last year’s Rs 40.81 in the same period. Following the board meeting held on October 26, 2024, Indus Motor declared an interim cash dividend of Rs 39 per share for the quarter, further enhancing shareholder returns.
The primary driver behind this profit surge is the increased revenue, which climbed to Rs 41.60 billion, compared to Rs 32.67 billion in the same quarter last year. After deducting the cost of sales, Indus Motor’s gross profit rose to Rs 5.58 billion, up from Rs 3.30 billion, showcasing strong operational performance.
However, rising expenses partly offset these gains. Distribution costs surged to Rs 662 million, up from Rs 383 million in the corresponding quarter last year, reflecting higher logistics and marketing expenditures. Administrative expenses also saw an uptick, reaching Rs 585 million, compared to Rs 536 million in the previous year. Overall, Indus Motor’s total expenses increased to Rs 4.28 billion, a significant rise from Rs 2.37 billion last year.
Before taxes and levies, Indus Motor recorded a profit of Rs 8.27 billion, a robust increase from Rs 4.86 billion in the same quarter the prior year. This impressive profitability amid rising costs indicates the company’s resilience and effective operational strategies. The board’s dividend announcement further underscores Indus Motor’s commitment to delivering shareholder value, with the Rs 39 per share dividend reflecting confidence in continued strong performance.
Looking ahead, Indus Motor’s financial results reflect a healthy start to FY2024, with the automotive giant positioning itself well despite challenges such as inflation and currency volatility. The company’s revenue growth is a promising sign for both the automotive sector and the economy, suggesting strong consumer demand for Toyota’s popular vehicle lineup in Pakistan. As the fiscal year progresses, investors and stakeholders will be closely monitoring how the company sustains this momentum amidst broader economic conditions.