Toyota manufacturer Indus Motor Company shuts operations in Pakistan; details inside

KARACHI – Indus Motor Company Limited on Monday suspended operations at its production facility till October 31 in wake of shortage of parts.

In a stock filing released on Monday, the autogiant revealed that low inventory levels of raw materials and components are hindering its ability to meet production requirements amid ongoing supply chain challenges.

Despite these operational setbacks, Indus Motor reported a robust financial performance for the July-September quarter, posting a profit of Rs5.09 billion, a significant increase of 58.3% compared to Rs3.22 billion in the same period last year. This translates to earnings per share of Rs64.77, up from Rs40.91 in the previous year.

The company also announced its first interim cash dividend of Rs39 per share, reflecting a 390% payout for the quarter ending September 30, 2024. Revenue climbed 27.3% to Rs41.6 billion, up from Rs32.67 billion a year earlier. The cost of sales rose by 22.7%, which was less than the revenue increase, resulting in a 69.1% rise in gross profit to Rs5.58 billion.

On the expense side, administrative expenses increased by 9.2% to Rs584.79 million, while selling and distribution expenses surged by 72.9% to Rs662.52 million, and other operating expenses jumped 83.9% to Rs451.28 million. The company’s finance costs rose significantly, increasing by 98.5% to Rs61.77 million, primarily due to higher interest rates. Furthermore, the company paid a higher tax of Rs3.18 billion, an 86.2% increase compared to Rs1.71 billion in the same period last year, resulting in an effective tax rate of 38.5%.

As Indus Motor navigates these challenges, stakeholders will be closely monitoring the company’s ability to resume full production and manage its supply chain effectively