Indus Motor Company Reports a 48% Surge in Profit Amid Rising Sales and Improved Margins

Karachi: Indus Motor Company Limited (INDU) reported a significant increase in profit for the third quarter of fiscal year 2025, with profit after tax reaching PkR6.6 billion, a 48% rise compared to PkR4.4 billion in the same period last year. The company attributed this growth to a substantial rise in sales volume and improved gross margins.

The company’s revenue for the quarter was PkR60.7 billion, marking a 28% increase from PkR47.3 billion in the third quarter of fiscal year 2024. This surge was driven by a 40% rise in sales volumes, with 9,077 units sold compared to 6,503 units in the same period last year. The increased sales were largely due to the popularity of the Yaris, which benefited from a facelift launch, and higher sales of other models.

Indus Motor’s gross margins improved to 16.9% in the third quarter of fiscal year 2025, up from 14.7% in the same period last year. This improvement was largely due to a decline in cold-rolled coil (CRC) and hot-rolled coil (HRC) prices and a more stable domestic currency.

Operating expenses fell by 53%, primarily due to lower warranty claims and reduced promotional expenses. However, the company’s other income decreased by 32%, totaling PkR2.8 billion, mainly due to a fall in interest rates.

In line with its historical payout ratio, Indus Motor announced an interim cash dividend of PkR50.0 per share. The total dividend for the first nine months of fiscal year 2025 stands at PkR126.0 per share.

Looking ahead, AKD Securities Limited has set a target price of PkR3,350 per share for Indus Motor by December 2025, citing the company’s high localization efforts, its first mover advantage in the hybrid electric vehicle segment, and an extensive dealership network across the nation.