Indus Motor Company Ltd. announced (INDU), the manufacturer of Toyota vehicles in Pakistan, announced the temporary suspension of operations at its production plant due to ongoing supply chain disruptions and shortages of raw materials and essential components.
The suspension will continue from October 29 to October 31, 2024, according to the notification submitted to the Pakistan Stock Exchange (PSX) on Monday.
“The Company is currently experiencing low levels of raw material and component inventory and is facing ongoing supply chain challenges. This has resulted in a shortage of parts and components needed to produce vehicles,” the company’s filing to PSX said.
As a result, the company said it was unable to meet its production requirements.
Last month, Indus Motor also temporarily suspended operations, from September 26 to September 30, 2024, due to supply chain disruptions. The company cited a shortage of raw materials and components, which hampered its ability to meet production requirements.
Indus Motors reported net profit after tax (NPAT) of Rs 5.1 billion (EPS: Rs 64.77) for the first quarter of fiscal 2025 (1QFY25), representing a 58% year-on-year (YoY) increase but a 10% decline. On a quarterly basis.
According to IMS Securities, earnings beat expectations, largely due to higher-than-expected margins and other steady income. In conjunction with the earnings report, the company announced a dividend of 39 riyals per share.