Indus Motors Toyota, which is one of the most popular car brands in the country, has announced its financial results for the 3rd quarter that ended on March 31st 2019. The maker of Toyota Corolla posted a profit of Rs. 3.34 billion, which showed a decline of 21.80% compared to Rs. 4.27 billion last year.
This takes the nine-month profit to Rs. 10.25 billion, down by 11.85% as compared with Rs. 11.63 billion in the previous year.
However, the net sales of the company for the first nine months of FY19 increased by 18% to Rs. 117.98 billion as compared with Rs. 99.82 billion in the corresponding period of the last year.
The overall revenue mainly increased due to improved volumes of Toyota Corolla, whereas, the net profit declined mainly on account of the rise in input costs due to the depreciation of PKR against USD and JPY. The company, along with its automotive peers, has been raising prices in multiple phases since 2018.
However, the cost of sales increased by 24.7% to Rs. 103 billion as compared with Rs. 82 billion due to the depreciation of Pakistan Rupee and Japanese Yen.
The company’s combined sales of CKD & CBU vehicles for the nine month period until March 31, 2019, increased by 7%, to 50,181 units against 47,103 units during the same period last year. Accordingly, its market share stood at 27% of the locally manufactured PC & LCV vehicles for the nine-month period.
The recent imposition of 10% FED has drastically reduced the sales volumes of 1700cc and above vehicles and the same can be seen in the volumes breakdown below.
Corolla once again took the lead in the sales as 42,989 units were sold, up by 11.1% during the nine months as compared with 38,244 units in the corresponding period of the previous year.
However, Toyota Fortuner saw a decline in sales during the period. The company sold 2,009 units against 2,741 in the same period last year, down by 26.71%.
Moreover, Hilux sales also declined by 16.06%. During the first half of the fiscal year, Toyota sold 4,568 units of Hilux as compared with 5,442 units in the same period last year.
The other income of the company was stated at Rs. 3.15 billion as compared with Rs. 2.67 billion in the nine months. However, the finance costs were cut down to Rs. 40.81 million as the delivery period was shortened to less than two months as compared with six months a year ago. Deliveries exceeding two months also attract a penal charge.
Overall expenses of the company were posted at Rs. 2.11 billion from Rs. 2.05 billion.
Earnings per share of the company were stated at Rs. 130.50, down from Rs. 148.04 for the nine month.
The Board of Directors declared a third interim cash dividend of Rs. 30 per share for the quarter. On a cumulative basis, this adds up to Rs. 87.5 per share as compared to Rs. 95 per share for the same period last year.
The company has extended the warranty period from 2 years or 50,000 km to 3 years or 100,000 km for all CKD and CBU products.
INDU’s script at the bourse closed at Rs. 1348.34, which was up by Rs. 30.17 or +2.29% with a turnover of 2560 shares on Friday.