Toyota Indus Motors’ Profit Grows 76% to Rs. 16.55 Billion in 9 Months

Indus Motor Company Limited (PSX: INDU) announced its financial results for the nine months ended March 31, 2025 (9MFY25), posting a Profit After Tax (PAT) of Rs. 16,555 million (Earnings Per Share: Rs. 210.62), reflecting a 76 percent increase year-on-year. For the third quarter (January to March 2025), the company reported a profit of Rs. 6,597 million (EPS: Rs. 83.93), up by 48 percent year-on-year and 36 percent quarter-on-quarter. Alongside the results, Indus Motor declared a cash dividend of Rs. 50.00 per share for the third quarter, taking the cumulative payout to Rs. 126.00 per share for 9MFY25. Net sales stood at Rs. 145,532 million during 9MFY25, marking a 48 percent increase year-on-year. In the third quarter, revenue grew by 28 percent year-on-year and 40 percent quarter-on-quarter, driven by a 40 percent year-on-year increase in sales volumes to 9,077 units, according to Arif Habib Limited (AHL). Segment-wise, Yaris, Corolla, and Corolla Cross volumes rose by 16 percent year-on-year to 6,347 units, while Fortuner and Hilux volumes surged by 159 percent year-on-year to 2,730 units. Gross margins in the third quarter were recorded at 16.9 percent, compared to 14.7 percent in the same period last year and 14.1 percent in the preceding quarter. The margin improvement was primarily attributed to higher volumetric sales leading to economies of scale, alongside a shift in the sales mix towards higher-priced models, notably Fortuner and Hilux. Other income declined by 32 percent year-on-year to Rs. 2,791 million during the third quarter, mainly due to a reduction in interest rates over the period under review. The company recorded an effective tax rate of 38.9 percent for the third quarter, compared to 41.5 percent in the corresponding period last year. The brokerage maintains a “Buy” recommendation on Indus Motor (INDU), with a December 2025 target price of Rs. 2,459.70 per share. The stock is currently trading at forward valuations with a Price-to-Earnings (P/E) multiple of 7.1x for FY25 and 5.5x for FY26.