Karachi: Indus Motor Company Ltd has announced a substantial first interim cash dividend of Rs. 39 per share, marking a 390% dividend rate, following a robust financial performance for the quarter ended September 30, 2024. The Board of Directors, convening in Karachi on October 26, 2024, endorsed this payout alongside reporting a notable rise in profits.

In the recent quarter, the company witnessed its revenue from contracts with customers soar to Rs. 41.60 billion, up from Rs. 32.67 billion in the same period last year. This increase translated into a gross profit of Rs. 5.58 billion, significantly higher than the Rs. 3.30 billion recorded in 2023. The profit from operations stood at Rs. 3.88 billion, improving from Rs. 2.14 billion, driven by enhanced operational efficiency and cost management.

According to information available from the Pakistan Stock Exchange (PSX), Indus Motor's financial stability is underscored by its other income, which more than doubled to Rs. 4.46 billion from Rs. 2.82 billion, contributing to a pre-tax profit of Rs. 8.25 billion, up from Rs. 4.93 billion the previous year. The effective tax rate saw the post-tax profit settling at Rs. 5.09 billion, an increase from Rs. 3.22 billion in 2023, translating into an earnings per share growth from Rs. 40.91 to Rs. 64.77.

The company's financial results highlight an efficient management of distribution and administrative expenses, despite a slight increase in finance costs. The Workers' Profit Participation Fund and Workers' Welfare Fund contributions were also managed effectively.

Shareholders registered by November 7, 2024, will be eligible for the dividend, with the share transfer books remaining closed from November 8 to November 12, 2024. Transfers received at the company's Share Register by the close of business on November 7 will be recognized timely for the entitlement.

Indus Motor Company Ltd also announced that the detailed quarterly report for the period will be disseminated through PUCARS, adhering to the set timelines.