Indus Motor Posts Record Rs. 23 billion Profit in FY25

Indus Motor Company Limited (INDU) has announced its highest-ever net profit, closing FY25 with Rs. 23 billion, a 53 percent surge from Rs. 15.07 billion in FY24. Earnings per share rose to Rs. 292.74 from Rs. 191.76.

Key drivers of growth:

• Net sales expanded 41 percent to Rs. 215.1 billion.
• Gross profit jumped 61 percent year-on-year to Rs. 31.2 billion.
• Pre-tax profit also increased 61 percent, reaching Rs. 37.7 billion.

Quarterly Performance

Despite the robust yearly outcome, the April–June quarter reflected some weakness. INDU posted a quarterly profit of Rs. 6.4 billion (EPS: Rs. 81.88), up 14 percent year-on-year but slipping 2 percent compared to the previous quarter.

• Gross margins narrowed to 3 percent in 4QFY25, from 14.2 percent in 4QFY24 and 16.9 percent in 3QFY25.
• Analysts at Topline Securities attributed the decline to a shift in the sales mix toward Corolla, Yaris, and Cross variants, while sales of Fortuner and Hilux units decreased.
• Rising competition from Chinese SUVs and pickups also weighed on margins.

Over the course of FY25, Indus Motor successfully strengthened its margins despite facing pressure in the final quarter. Gross margins for the year rose to 14.5 percent, compared with 12.7 percent in FY24.

The improvement reflects efficiency gains in operations and cost management, which helped offset the challenges posed by a more competitive sales mix and rising market competition.

Dividend and Cash Position

The company also rewarded shareholders with a final cash dividend of Rs. 50 per share. This brought the total payout for FY25 to Rs. 176 per share, the highest in recent years.

In addition, customer advances stood at Rs. 34 billion by the end of the year, marking the highest level in two and a half years. The figure highlights the strong booking pipeline and sustained demand across its product portfolio.

Pressure Points to Note

Despite record profitability, some areas showed signs of strain. Other income declined by 6 percent year-on-year, settling at Rs. 14.95 billion.

The company also faced a higher effective tax rate, which climbed to 39 percent. This increase limited the overall boost in earnings, tempering some of the gains from stronger sales and margins.