Significant Increase in Indus Motor's Post-Tax Profits: A 75% Boost in 9 Months of Fiscal Year 25
Sizzling Profits at Indus Motor Company!
Indus Motor Company (IMC) is burnin' up the competition with a massive 75% surge in profits-after-tax (PAT) for the initial nine months of the financial year 2024-25! This astronomical increase comes in comparison to the same time frame last year.
The company proudly released this electrifying news to the Pakistan Stock Exchange (PSX) and in an official announcement a few days ago.
Last year during the same period, IMC managed a PAT of just Rs9.41 billion, but this year, they're ringin' in a whopping Rs16.55 billion!
The earnings per share (EPS)fortunate folks who own a piece of the company, ballooned to Rs210.62, compared to a humble Rs119.67 in the prior year. IMC also dished out a third interim cash dividend of Rs50 per share, which is way up from last year's Rs34!
IMC's 9-Month Profit Hike Blazes Ahead
As stated in the announcement, IMC powered through the nine-month period ended March 31, 2025, with incredible success. The total sale of completely knocked down (CKD) and completely built units (CBU) skyrocketed by a stunning 57% to reach 21,890 units - up from a mere 13,922 units in the corresponding period last year.
"This astonishing growth can be attributed to the resurgence in consumer demand, along with the continued triumph of models such as the Corolla Cross and Toyota Yaris, boosted by timely updates and feature enhancements," the statement explained.
The net sales revenue for the company galloped to Rs145.53 billion, surpassing the previous year's Rs98.23 billion in the same span.
"This significant improvement reflects increased sales volume, stable input costs thanks to a favorable exchange rate, and effective management of costs through increased localization," the statement continued.
Ali Asghar Jamali, the CEO of IMC, shared that the impressive performance is due to a decrease in interest rates, an upsurge in consumer confidence, and stable foreign exchange rates. He emphasized the necessity for a review of government policies, particularly the adjustment of depreciation allowances on used car imports to foster fair competition and bolster government revenue streams.
Mr. Jamali highlighted that used car imports still account for a considerable portion (29%) of the local auto market by value in the current financial year. It's worth noting that during this period, the imports of second-hand vehicles increased modestly by 6%, totaling 29,590 units, compared to 27,859 units in the corresponding period last year.
**Source: The numbers presented in this article are from Indus Motor Company's official announcement to the Pakistan Stock Exchange (PSX) and the company's own statement.
**Enrichment:- Lower interest rates can potentially decrease borrowing costs for both consumers and companies, resulting in increased demand and profit margins[1].- A favorable exchange rate can help to keep input costs stable[1].- A more stable economic environment can foster consumer confidence, leading to increased sales and profits[4].- The introduction of new models can attract demand, fueling sales growth and boosting profits[4].- Timely updates and feature enhancements to existing models can aid in their continued success[4].
[1] https://www.bloombergquint.com/onweb/autos-heads-for-record-premiums-in-india-as-demand-rebounds[2] https://www.dawn.com/business/business-news/auto-sales-in-pakistan-see-huge-growth-in-fb2023[3] https://www.dawn.com/business/business-news/auto-sales-fare-well-in-q1-fbr-data-reveals[4] https://www.dawn.com/business/business-news/local-auto-assemblers-register-4-34-growth-in-field-for-october-fbr-data
- The growth in Indus Motor Company's (IMC) profits can be linked to a decrease in interest rates.
- A favorable exchange rate has played a significant role in keeping IMC's input costs stable.
- Increased localization has also contributed to IMC's profit growth by effectively managing costs.
- The resurgence in consumer demand and the success of models such as the Corolla Cross and Toyota Yaris have been key drivers of IMC's profit surge.
- The third interim cash dividend of Rs50 per share is a significant increase from last year's dividend of Rs34, indicating IMC's financial health and earnings growth.
- Despite a modest 6% increase in used car imports, they still account for a considerable portion of the local auto market by value, prompting a call for a review of government policies to ensure fair competition and bolster government revenue streams.
