Karachi, April 28, 2025 – Indus Motors Company Limited announced its financial results for the third quarter of the fiscal year 2024-25 on Monday, significantly exceeding market expectations.
The robust performance has been welcomed by investors and analysts alike.
According to analysts at Insight Research, Indus Motors posted a profit after tax (PAT) of Rs6.6 billion, translating into earnings per share (EPS) of Rs83.9, compared to a PAT of Rs4.5 billion (EPS: Rs56.6) during the same period last year. Analysts noted that the results from Indus Motors were above their forecasts, mainly due to stronger-than-expected gross margins.
During 3QFY25, the company’s revenue saw a remarkable growth of approximately 28% year-on-year (YoY) and 40% quarter-on-quarter (QoQ), reaching Rs60.7 billion. This impressive rise in revenue was primarily driven by higher volumetric sales, reflecting the strong demand for Indus Motors’ vehicle lineup.
Gross margins improved significantly, clocking in at around 16.9% during the quarter, compared to 14.7% in the same period last year, marking an increase of roughly 220 basis points. Analysts attributed this improvement to a notable decline in raw material costs alongside increased sales volumes.
Despite the solid top-line growth, Indus Motors reported a decline in other income, which fell by around 32% YoY and 25% QoQ to Rs2.8 billion, primarily due to lower prevailing interest rates. Administrative expenses rose by approximately 62% YoY, aligned with higher sales activity, though they declined by about 4% on a quarterly basis.
The effective tax rate (ETR) for the quarter stood at around 39%, slightly lower than the 40% reported in the previous quarter.
In a move welcomed by shareholders, Indus Motors also announced a cash dividend of Rs50.0 per share for the third quarter, bringing the total payout for the nine months of FY25 to Rs126.0 per share.
With these strong results, Indus Motors continues to solidify its position as one of the leading players in Pakistan’s automotive sector, demonstrating resilience and operational excellence despite a challenging economic environment.