Karachi: Indus Motor Company Limited (INDU) has reported a notable decline in its fiscal year 2024 sales, with gross margins improving significantly amidst challenging economic conditions. The company discussed these trends and its future outlook during an analyst briefing held today.

According to AKD Securities Limited, INDU’s revenue fell by 14% year-over-year to PKR 152 billion, down from PKR 177 billion in FY23, primarily due to a 40% decrease in units sold. Despite this, the company managed to improve its gross margins to 13% from 4% the previous year, thanks to effective cost management and pricing strategies.

Management highlighted ongoing challenges in the auto industry, including economic instability, high interest rates, and tax discrepancies affecting local and imported vehicles. However, they remain optimistic about a potential recovery in the current fiscal year, contingent on favorable macroeconomic and political conditions. INDU is also seeing a consumer shift towards hybrid vehicles and plans further investments to increase localization and reduce costs. The company is exploring options to expand its export markets and expects to introduce new models in collaboration with its principal.