Indus Motor Company (IMC) has announced a remarkable financial performance for the half-year ended December 31, 2024, showcasing significant growth in key financial indicators. The companys net sales turnover surged by 67% to Rs. 84.88 billion, compared to Rs. 50.91 billion in the same period last year. This impressive increase was primarily driven by higher sales volumes of Completely Knocked Down (CKD) and Completely Built Up (CBU) units.
The profit after tax (PAT) for the half-year stood at Rs. 9.96 billion, a staggering 101% increase from Rs. 4.96 billion in the corresponding period last year. This strong financial performance was supported by favorable exchange rates, cost optimization initiatives, and enhanced localization efforts, which contributed to reduced input material costs.
Key Performance Highlights:
- Vehicle Sales Volume: Increased by 74%, reaching 12,749 units compared to 7,324 units last year.
- Vehicle Production: Grew by 96%, with 12,525 units produced versus 6,391 units in the prior period.
- Gross Profit: Jumped by 148% to Rs. 11.69 billion from Rs. 4.71 billion last year.
- Other Income: Increased by 54% to Rs. 8.18 billion.
- Earnings Per Share (EPS): Doubled to Rs. 126.69, compared to Rs. 63.07 last year.
- Share Price Performance: The companys share price saw a notable increase, rising from Rs. 1,553 to Rs. 2,100 per share, leading to a market capitalization of Rs. 165.06 billion.
Dividend Declaration:
The Board of Directors declared a second interim cash dividend of Rs. 37 per share for the quarter ended December 31, 2024. This brings the total dividend for the half-year to Rs. 76 per share, up from Rs. 37.7 per share in the previous year.
Business Outlook & Challenges:
IMC highlighted that Pakistans economic outlook is showing signs of partial recovery, supported by structural reforms and the continuation of the IMF program. The company continues to advocate for policy measures that benefit local vehicle and parts manufacturers.
Key recommendations include:
- Lifting restrictions on auto financing up to Rs. 3 million.
- Rationalizing depreciation rates on imported used cars.
- Providing duty and tax relief on vehicle exports.
- Reducing vehicle-related taxes to enhance affordability.
- Rationalizing duties and taxes on CKD vehicles to support volume growth and industry sustainability.
Future Prospects:
The governments recent reduction in interest rates is expected to make vehicle financing more affordable, potentially driving increased consumer demand. IMC remains optimistic about the industrys growth, contingent on stable economic conditions and favorable policies.
Indus Motor Company continues to play a pivotal role in Pakistans automobile sector, contributing to job creation and economic growth while delivering innovative and high-quality vehicles to its customers.
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