Indus Motor Company (INDU), the manufacturer/assembler of Toyota vehicles in Pakistan, has announced to suspend its operations for three days citing low inventory and a shortage of components.
The listed company shared the development in its notice to the Pakistan Stock Exchange (PSX) on Monday.
“The company is currently experiencing low levels of raw material and component inventory and is facing ongoing supply chain challenges. This has resulted in a shortage of parts and components necessary for vehicle production. As a result, the company is unable to meet its production requirements,” read the notice.
“Consequently, the company has decided to temporarily suspend operations at its production plant from October 29, 2024, to October 31, 2024, both days inclusive,” it added.
In its notice to the PSX earlier, the automaker reported a profit of Rs5.09 billion for the quarter ended September 30, 2024 (1QFY25), an increase of 58% when compared with earnings of Rs3.22 billion in the same period of the previous year.
The company’s earnings per share (EPS) stood at Rs64.77 in 1QFY25 compared with EPS of Rs40.91 in the same period of previous year (SPPY). The board of directors also declared an interim cash dividend of Rs39 per share i.e. 390% for the quarter ended September 30, 2024.
Last month, INDU announced that its board approved an investment of Rs1.1 billion (~$3.94 million) to enhance what it called localisation of production. The investment was in addition to an investment of Rs3 billion announced in February.
The additional investment, a part of the company’s overall plan to continuously increase localisation of parts and components of vehicles, is planned to be completed by the first quarter of calendar year, 2026.
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