Indus Motor sees strong 75% growth in profitability

April 28, 2025 (MLN): Indus Motor Company Limited (PSX: INDU) recorded an increase of over 75% in its profitability for the nine-month period ended March 31, 2025, earning a profit after tax of Rs16.55 billion [EPS: Rs210.62] compared to a profit of Rs9.41bn [EPS: Rs119.67] in the same period last year (SPLY).

The company has declared a third interim cash dividend of Rs50 per share (500%), in addition to the combined interim cash dividend of Rs76 per share (760%) already paid.

Going by the financial results, the company's revenue from contracts with customers rose by 48.15% to Rs145.53bn as compared to Rs98.23bn in SPLY.

However, the cost of sales also increased by 42.77% to Rs123.57bn, leading to a significant improvement in gross profit, which surged by 88.06% to Rs21.96bn.

The company’s operating profit witnessed a remarkable growth of 182.54%, standing at Rs17.92bn compared to Rs6.34bn last year.

During the period under review, other income grew by 16.49% to Rs10.97bn.

On the expense side, administrative expenses rose by 35.48% year-on-year (YoY) to Rs2.32bn, while distribution expenses declined by 58.86% YoY to Rs1.47bn.

Other operating expenses jumped by 363.33% YoY to Rs250.11 million.

The company’s finance cost surged by 89.40% and stood at Rs172.97m compared to Rs91.32m in SPLY, mainly due to higher borrowing costs.

On the taxation front, the company paid Rs10.63bn, reflecting an increase of 102.84% from the Rs5.24bn paid during the same period last year.

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