Indus Motor Company Limited (INDU) has reported its highest-ever net profit of Rs. 23 billion for the financial year 2024-25 (FY25), a 53 percent surge compared to Rs. 15.07 billion earned in FY24. The company’s earnings per share (EPS) also rose significantly to Rs. 292.74 from Rs. 191.76 last year.
Strong Sales Boost Annual Performance
The record profitability was mainly supported by a 41 percent jump in net sales, which reached Rs. 215.1 billion. Gross profit surged 61 percent year-on-year to Rs. 31.2 billion, while pre-tax profit also rose 61 percent to Rs. 37.7 billion.
On a full-year basis, gross margins improved to 14.5 percent, compared to 12.7 percent in FY24, showing better efficiency despite rising competition in the auto sector.
Quarterly Results Miss Expectations
Despite the strong full-year numbers, the fourth-quarter performance fell short of industry expectations. The company posted a quarterly profit of Rs. 6.4 billion (EPS: Rs. 81.88), up 14 percent year-on-year but down 2 percent from the previous quarter.
Gross margins slipped to 13.3 percent in 4QFY25, compared to 14.2 percent in 4QFY24 and 16.9 percent in 3QFY25. Analysts attributed the decline to a sales mix favoring higher volumes of Corolla, Yaris, and Cross variants, while sales of premium models like Fortuner and Hilux declined. Additionally, competition from Chinese pickups and SUVs weighed on margins.
Dividend and Financial Position
Indus Motor announced a final cash dividend of Rs. 50 per share, bringing the full-year payout to Rs. 176 per share. However, other income fell 6 percent year-on-year to Rs. 14.95 billion, while the company’s effective tax rate increased to 39 percent.
At the close of FY25, customer advances stood at Rs. 34 billion, a 2.5-year high, reflecting strong demand momentum.
Outlook
While quarterly challenges remain, the record-breaking FY25 profit underscores Indus Motor’s strong market presence. Analysts believe continued demand for affordable variants, coupled with efficient cost management, will play a critical role in sustaining profitability in the coming year.
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