Indus Motor shifts gears with a profit surge of more than double

February 28, 2025 (MLN): Indus Motor Company Limited (PSX: INDU) has reported a remarkable 101% increase in its profit after taxation for the half-year ended December 31, 2024, reaching Rs10 billion compared to Rs5bn in the corresponding period of 2023.

Additionally, the company announced a second interim cash dividend of Rs37 per share (370%) for the quarter ended December 31, 2024. This is in addition to the first interim cash dividend of Rs39 per share (390%) already paid earlier.

The earnings per share (EPS) for the period stood at Rs126.69, doubling from Rs63.07 in the corresponding period last year.

The surge in profitability was driven by a substantial increase in revenue and other income, despite higher taxation and operating expenses.

Revenue from contracts with customers jumped 66.7% to Rs85bn, up from Rs51bn in the previous year, fueled by strong sales growth.

Meanwhile, the cost of sales increased by 58.4% to Rs73bn, resulting in a gross profit of Rs11.7bn, representing a staggering 147.7% year-over-year growth.

Despite an increase in administrative expenses by 23.6% to Rs1.5bn and a significant rise in other operating expenses by 197.4% to Rs154.5 million, the company’s profit from operations soared 297% to Rs8bn.

Other income also posted a strong 54% rise to Rs8bn, contributing to the total income of Rs.16.5bn, up 123% from last year.

Finance costs surged by 59.7% to Rs99.5mn; however, this had minimal impact on the overall profitability.

The company’s profit before taxation stood at Rs16.4bn, reflecting a remarkable 127.4% increase.

Taxation expenses surged 186% to Rs6.4bn, but the overall profit after taxation remained robust.

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