Toyota Indus Motor Company (IMC) has announced its financial results for the first nine months of FY 2019-20.
The company posted a profit of Rs. 4.98 billion, showing a decline of 51.41% as compared with Rs. 10.25 billion in the corresponding period of last year.
IMC’s net profit has declined due to a decrease in sales volumes. According to the company, the marked decline in sales and profit for IMC was also a result of the devaluation of the Pakistani Rupee against the US Dollar.
The company’s net sales turnover for the nine months decreased by 35.72% to Rs. 75.83 billion as compared to Rs. 117.97 billion recorded last year. However, the cost of sales of the company decreased by 34% to Rs. 68.05 billion as compared to Rs. 103.05 billion.
The demand for automobiles declined significantly in Pakistan during the period due to a slowdown in the economy, devaluation of the Pakistani rupee against the US Dollar, and a decline in the purchasing power of the consumers. Another reason was high-interest rates, which reduced auto financing and demand was also affected by Additional Custom Duty and FED.
During the nine months, the sales of the company were down by 49% to just 25,300 units as compared with 49,475 units sold last year.
|Nine Months FY19-20(Jul-Mar) (Volumes)|
Other income of the company was down to Rs. 2.33 billion, showing a decrease of 26.03% as compared with Rs. 3.15 billion due to a drop in new car bookings during the period.
The Earnings per Share of IMC for the nine months ended March 31, 2020, was Rs. 63.41 as compared to Rs. 130.50 in the same period last year.
Indus Motor Company (IMC) has posted a profit of Rs. 2.67 billion in 3QFY20, declining by 20% on a YoY basis.
According to Topline Securities, the earnings came in above industry expectations on the back of higher-than-expected gross margin. Along with the result, the company has also announced a cash dividend of Rs. 10/share for 3QFY20, taking a cumulative payout of Rs. 23/share for 9MFY20.
During 3QFY20, the IMC net sales declined by 20% YoY on the back of lower unit sales as the company recorded sales of 11,125 units in 3QFY20 compared to 16,935 units in 3QFY19.