Daily Times

Indus Motor Company (IMC) reported a profit of Rs15.07 billion for the fiscal year that ended June 30, 2024 (FY24), an increase of 56% when compared with earnings of Rs9.66 billion in the same period of the previous year. The rise in profit comes despite lower revenue during the period.

As per the latest financial statements available at the Pakistan Stock Exchange (PSX) on Monday, the company’s earnings per share (EPS) stood at Rs191.76 in FY24 compared with EPS of Rs122.96 in FY23.

The board of directors also declared a final cash dividend of Rs43 per share i.e. 430%. This was in addition to the combined interim cash dividend of Rs71.7 per share i.e. 717% already paid.

The total cash dividend for 2023-24 stood at Rs114.7 per share i.e. 1,147%.

During FY24, the auto assembler posted revenue of Rs152.48 billion as compared to Rs177.71 billion in the same period of the previous year, a decline of 14%.

However, despite lower revenue, the company managed to post a gross profit of Rs19.38 billion in FY24, as compared to the profit of Rs7.93 billion registered in same period last year, largely due to the lower cost of sales.

This translated into a profit margin of 12.7% in FY24, as compared to 4.5% in SPLY.

During the period, the automaker saw its operating expenses balloon to Rs8.36 billion, up by over 86% YoY.

The company saw its other income reduce 4%, from Rs14.2 billion in FY23 to Rs13.66 billion in FY24.

Consequently, the automaker’s profit before tax clocked in at Rs23.3 billion in FY24, as compared to Rs16.8 billion in SPLY, a jump of 39%.

During FY24, the company paid Rs7.64 billion in taxation, as compared to Rs6.8 billion in FY23.

Indus Motor Company Limited (INDU) announced that its board has approved an additional investment of Rs1.1 billion (~$3.94 million) to enhance what it called localization of production. The company, the maker of Toyota-brand vehicles in the country, shared the development in its notice to the Pakistan Stock Exchange (PSX) on Monday.

“This is in continuation to our letter dated February 22, 2024 addressed to PSX regarding ‘Investment of Rs3 billion for additional localization of parts and components of various existing vehicles,’ which is ongoing and expected to be completed by third quarter of calendar year 2025,” read the notice.

The company announced that the Board of Directors in its meeting held on 30th August 2024, “has approved a further Investment of Rs1.1 billion to be made by the company for additional localization of parts and components of various existing vehicles, thereby making the total investment in project for additional localization to Rs4.1 billion”. The additional investment of Rs1.1 billion is planned to be completed by first quarter of calendar year, 2026, it shared.

Indus Motor said the latest investment is part of the company’s overall plan to continuously increase localization of parts and components of vehicles manufactured locally, in order to reduce outflow of foreign exchange and promote the local auto industry, generating employment and contributing to the economy. “The announced investment shall be made towards expenditure in plant and machinery, molds, dies, equipment and related expenses for localization of parts and components to be manufactured locally for various existing vehicles,” read the notice.

Last year, the company launched its Hybrid Electric Vehicle (HEV) Corolla Cross, which as per the company was 50% localised in terms of its value.

Back then, Indus Motor CEO Ali Asghar Jamali said after deducting government taxes, over 50% of Corolla Cross value comes from localised parts, which makes it unique among other assembled hybrids in the country.