Indus Motor Company (INDU) delivered a strong performance in FY25, posting a net profit of PKR23 billion (EPS: PKR292.74), up 53% from last year. Alongside the results, the company declared a full-year dividend of PKR176 per share. According to a report by Inter Market Securities.
Revenue rose 41% year-on-year to PKR215 billion, supported by a 61% jump in unit sales to 33,393 vehicles — outpacing the industry’s 40% growth. Yaris, Corolla, and Cross sales grew 55%, led by strong demand for the Yaris facelift, though Cross volumes fell amid intense SUV competition. Hilux and Fortuner sales surged 83%, driven mainly by institutional orders for the Hilux. Gross margins improved 1.8ppt to 14.5% on the back of higher volumes and favorable exchange rates.
Industry-wide, auto sales climbed 40% to 223,799 units, and management noted volumes could have topped 300,000 without flood-related disruptions. CKD sales rose 49% to 179,424 units, while used imports increased 9% to 42,125 units, accounting for 18% of the market.
The company reported over 60% localization for Yaris, Corolla, and Cross, and 40–45% for Hilux and Fortuner. However, engines and transmissions remain dependent on imports, as their localization requires production volumes of at least one million units annually. Management also flagged a continued shift in consumer preference from sedans to SUVs and confirmed ongoing talks with its parent on new model launches.
On policy, the company warned that proposed cuts in customs duties to 15% over five years would erode local manufacturing and encourage imports. While new entrants are expected to dilute market share, INDU believes established brands will continue to grow, albeit at a slower pace.
The company reaffirmed its Buy rating with a target price of PKR2,650 per share — an 18% upside from current levels — supported by strong brand loyalty and a solid balance sheet.
