Indus Motor Company Limited (INDU) has announced its financial results for the first quarter of fiscal year 2025, reporting a profit after tax (PAT) of Rs. 5.1 billion, translating to an earnings per share (EPS) of Rs. 64.77. This marks a 58% increase compared to the same period last year, where the EPS stood at Rs. 40.91.

In addition to the robust earnings, the company declared a cash dividend of Rs. 39.0 per share.

The company’s net sales for 1QFY25 reached Rs. 41.6 billion, a 27% year-on-year increase from Rs. 32.6 billion in the same period last year. This growth was driven by higher volumetric sales, with 6,160 units sold in 1QFY25 compared to 4,511 units in the corresponding period last year. However, on a quarter-on-quarter basis, revenue declined by 23% due to lower sales volumes, with 7,069 units sold in 4QFY24, impacted by a 16-day plant shutdown during the quarter.

Gross margins improved to 13.4% in 1QFY25, up from 10.1% year-on-year, benefiting from a stable PKR-USD exchange rate and better margins on the Corolla Cross. Sequentially, gross margins saw a slight decline due to a shift in the sales mix, with a higher proportion of sedan models like the Corolla and Yaris being sold compared to the Corolla Cross.

Other income rose by 58% year-on-year to Rs. 4.5 billion in 1QFY25, attributed to higher cash and cash equivalents and short-term investments.

The finance cost increased by 98% year-on-year to Rs. 62 million in 1QFY25, primarily due to an increase in short-term borrowings.

The company reported an effective tax rate of 39% for 1QFY25, compared to 35% in the same period last year.