Indus Motor Company (IMC) has posted an impressive financial performance for the quarter ending December 31, 2024, with profits soaring to Rs. 4.87 billion. This marks a remarkable 179% increase compared to the Rs. 1.74 billion recorded in the corresponding period of the previous year.
According to the latest financial reports available on the Pakistan Stock Exchange (PSX), IMC’s earnings per share (EPS) rose significantly to Rs. 61.92 in Second Quarter Fiscal Year 2025 (2QFY25), a substantial jump from Rs. 22.15 in the same quarter last year.
The company’s board of directors (BoD) announced an interim cash dividend of Rs. 37 per share (370%), adding to the Rs. 39 per share (390%) dividend already paid earlier in the fiscal year.
Revenue and Profitability Surge
IMC witnessed a substantial surge in revenue, reaching Rs. 43.3 billion in 2QFY25, representing a 137% increase compared to Rs. 18.2 billion in the same period last year. This higher revenue translated into a gross profit of Rs. 6.1 billion, up by an astounding 331% from Rs. 1.4 billion in the corresponding quarter of the previous year.
The company also reported an improved profit margin of 14.1% in 2QFY25, a notable increase from 7.8% in the same period last year.
On the operational side, IMC managed to reduce its operating expenses by nearly 12% year-over-year (YoY), bringing them down to Rs. 1.2 billion. This cost optimization, combined with increased revenues, allowed the company to record a profit from operations of Rs.4.5 billion, a stark contrast to the Rs. 33.7 million loss reported in the previous year’s corresponding quarter.
Furthermore, IMC’s other income rose by 49%, reaching Rs. 3.7 billion in 2QFY25 compared to Rs. 2.5 billion in the same quarter last year.
Pre-tax Profit and Taxation
As a result of these strong financials, the company’s profit before tax surged to Rs. 8.2 billion in 2QFY25, a staggering 236% increase from Rs. 2.4 billion in the same period last year.
However, IMC’s tax payments also saw a significant jump, with Rs. 3.2 billion paid in taxation during 1QFY25, compared to only Rs598 million in the same period last year.
The latest earnings report highlights IMC’s ability to capitalize on market opportunities and improve operational efficiencies, leading to a robust financial performance. With a strong revenue base, higher profit margins, and effective cost management, the automaker has positioned itself well for sustained growth in the coming quarters.
