Indus Motor Company (IMC) posted a 179% increase in net profit, reaching Rs 4.87 billion for the quarter ended December 31, 2024 (2QFY25), compared to Rs 1.74 billion in the same period last year, according to financial statements released on Friday at the Pakistan Stock Exchange (PSX).
The company’s earnings per share (EPS) rose to Rs 61.92 in 2QFY25, up from Rs 22.15 in the corresponding period last year. Supported by strong financials, the board of directors (BoD) declared an interim cash dividend of Rs 37 per share (370%), in addition to the Rs 39 per share (390%) already paid earlier.
The company’s stock price currently stands at Rs 2119, which is 1.36% less than its price yesterday. Interestingly however, in the starting hours of Friday’s trading session, the company’s share price touched the peak of Rs 2285, to immediately crash down to Rs 2120, where it more or less stayed for the rest of the day, indicating a much larger 7.2% drop, all during a day’s trade. It is also important to note that the company’s financials were made public towards the back end of the trading session, hence not attributable to the changes in the stock price.
IMC recorded revenue of Rs 43.3 billion in 2QFY25, reflecting a 137% year-on-year (YoY) increase from Rs 18.2 billion in the same period last year. The company’s gross profit surged by 331% to Rs 6.1 billion, with gross margins improving to 14.1%, compared to 7.8% in the previous year.
Additionally, operating expenses declined by 12% YoY to Rs 1.2 billion, while profit from operations reversed from a Rs 33.7 million loss in the same period last year to Rs 4.5 billion in 2QFY25.
IMC also saw a 49% increase in other income, reaching Rs 3.7 billion, up from Rs 2.5 billion in the same period last year. Consequently, profit before tax (PBT) jumped 236% to Rs 8.2 billion. However, the company’s tax payments rose significantly to Rs 3.2 billion, compared to Rs 598 million in the corresponding period last year.
The latest results follow a 58% profit increase in 1QFY25, where IMC posted earnings of Rs 5.09 billion. The company’s financial performance in H1FY25 reflects robust revenue growth, cost efficiency, and improved margins, contributing to sustained profitability.
Earlier today, Giri Venkatesh, a seasoned automotive executive with nearly two decades at Toyota and Lexus across Asia, was also appointed as a director at Indus Motor Company.
Toyota’s increasingly good performance comes as a positive sign for the auto industry due to a slump in the production and demand of automobiles over the last two years. Even earlier in the reported quarter, the company closed its production facility for multiple days in November citing raw material shortage and supply chain disruptions.
