Despite auto sector’s slowdown, Indus Motor Company’s profit up 56% at Rs15.07bn in FY24

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%.

Indus Motor posts 89% higher profit of Rs4.96bn in 1HFY24

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.