Karachi: Indus Motor Company Ltd. has announced its financial results for the year ended June 30, 2026, demonstrating a robust performance with significant increases in both revenue and profitability. According to the Directors' Report presented at the 37th Annual General Meeting scheduled for September 28, 2026, the company's profit after taxation surged to Rs. 25.51 billion, marking a 17% increase compared to Rs. 23.01 billion in the previous year.
The company's net sales revenue rose to Rs. 258.75 billion from Rs. 215.14 billion during the corresponding period last year. This increase was driven by a 33% rise in total sales of CKD and CBU units, reaching 45,035 units, and a 37% growth in vehicle production, which totaled 45,597 units. The company's market share in the domestic automotive sector remained stable at approximately 14.7%.
According to information available from the Pakistan Stock Exchange (PSX), the company's earnings per share increased by 17%, reaching Rs. 324.50, up from Rs. 292.74 in the previous year. The company's basic and diluted earnings per share reflect this growth.
The financial results reflect the company's strategic initiatives, including effective cost reduction measures, increased localization of parts, and a favorable exchange rate, which collectively contributed to the decline in material costs. Indus Motor Company Ltd.'s contribution to the national exchequer amounted to approximately Rs. 140 billion, representing about 1% of the total tax revenue collected by the Government of Pakistan.
In terms of dividend distribution, the company declared multiple interim dividends totaling Rs. 11.63 billion, with the proposed final dividend set at Rs. 3.69 billion. Additionally, a proposed transfer of Rs. 10.50 billion to general reserves is planned. The company's return on equity recorded a slight decrease of 2%, settling at 29.4%.
The company's commitment to sustainability and corporate social responsibility was highlighted through various initiatives, including a significant investment of Rs. 377 million in CSR programs, impacting over 255,761 beneficiaries. These initiatives encompass areas such as healthcare, education, environmental conservation, and support for persons with disabilities.
Indus Motor Company Ltd. also reported progress in its sustainability-related financial disclosures, aligning with international standards and integrating sustainability considerations into its strategic planning. The company's governance framework includes oversight by the Board Audit and Risk Committee, ensuring robust risk management practices.
The company's Board of Directors consists of ten members, with a composition that includes one female director and three independent directors. The board convened four times during the fiscal year, maintaining active engagement in corporate governance and strategic oversight.
In conclusion, Indus Motor Company Ltd.'s strong financial performance and strategic initiatives underscore its resilience and capacity for growth within the competitive automotive industry. The company's focus on innovation, sustainability, and social responsibility positions it favorably for continued success in the evolving market landscape.