KARACHI – Indus Motor Company (IMC), the assembler of Toyota vehicles in Pakistan, reported a stellar performance in FY25 with net earnings jumping 53% year-on-year to PKR 23 billion (EPS: PKR 292.74). The company also announced a cash dividend of PKR 176 per share for the year, according to a report by Intermarket Securities.
Revenue climbed 41% to PKR 215 billion, driven by a 61% rise in unit sales to 33,393 vehicles comfortably outpacing the industry’s 40% growth. The refreshed Yaris remained a key driver, while Corolla and Corolla Cross also contributed to the topline despite stiff competition in the SUV segment. Demand for the Hilux and Fortuner surged 83%, largely due to bulk institutional orders for the pickup truck.
Gross margins improved to 14.5% from 12.7% a year earlier, supported by higher sales volumes and favorable exchange rate movements.
Industrywide, Pakistan’s auto sales increased 40% to 223,799 units. Management noted volumes could have exceeded 300,000 units had there been no flood-related disruptions. CKD sales rose 49% to 179,424 units, while used car imports also ticked up 9% to 42,125 units, accounting for 18% of overall sales.
The company highlighted that localization now exceeds 60% for Yaris, Corolla, and Corolla Cross models, while Hilux and Fortuner parts are localized at 40–45%. However, engines and transmissions remain fully import-dependent, with executives stressing that localization of these critical components would only be feasible once annual production crosses one million units.
Looking ahead, IMC confirmed ongoing discussions with its parent company regarding the launch of new models, while noting a clear market shift from sedans to SUVs.
On the policy front, management cautioned that the government’s proposal to gradually reduce customs duties to 15% could undermine local manufacturing and encourage a surge in imports. While new entrants are expected to increase competition, IMC said established players would still maintain a growth trajectory, albeit at a slower pace.
Intermarket Securities reaffirmed its “Buy” rating on IMC, setting a target price of PKR 2,650 per share an 18% upside from current market levels citing strong brand equity and a robust balance sheet as key strengths.
