Toyota Indus Motor Company (IMC) has announced its financial results for the second quarter that ended on December 31, 2020 (FY21).
The company posted a profit of Rs. 2.95 billion in the second quarter, up by 2x or 200 percent compared to Rs. 985 million profit in the same period last year.
This took the half year’s profit to Rs. 4.80 billion. It had reported a profit of Rs. 2.30 billion in the same period last year.
Along with the result, the company also announced a cash dividend of Rs. 25 per share.
The net sales for the second quarter doubled to Rs. 45.45 billion as compared to Rs. 22.05 billion recorded in the same period last year, mainly due to a 93 percent increase in unit sales. The company recorded vehicle sales of 14,424 units in 2QFY21 as compared to 7,468 units in 2QFY20. Volumetric sales were up by 93.14 percent year-on-year because of the Toyota Yaris model launch, resumption of sales post lockdown, and low-interest-rate environment
The company had also announced a hike in the prices of Toyota Yaris during the above-mentioned period.
|FY21 (Oct-Dec) (Volumes)|
|Models||Oct-Dec (FY21)||Oct-Dec (FY20)||Difference|
In 2QFY21, the gross profit margin stood at 8.2 percent, up by 22bps year-on-year. Lower localization of Yaris was likely another factor that influenced lower reported margins, said a report by KASB Securities.
Administrative expenses came off by 10 percent, while distribution costs inched up by 3 percent year-on-year.
Other income of the company saw an increase of 1.5x to Rs. 1.3 billion as compared with Rs. 532 million due to higher cash balance from increased order intake. Earnings per share of the company increased to Rs. 37.60 from Rs. 12.54 in the second quarter.
The healthy order book held by the company led to greater customer advances received, increasing the cash balance.
At the time of filing this report, INDU’s shares at the bourse were trading at Rs. 1,120, down by Rs. 6.90 or 0.61 percent, with a turnover of 13,380 shares on Friday.
It also bears mentioning that the better performance of the automaker is due to the introduction of the Toyota Yaris earlier last year. The all-new product warranted the interest of a huge lot of the customers, with the Toyota Yaris alone out-selling Honda City and Honda Civic combined.
This also goes to show that the market is in a dire need of a refresh. For a long time, the Pakistani market has been surviving on an endless supply of the “same old” products.
The warm welcome given to several new players and vehicles should serve as a testament that the launch of newer cars will not only be a ‘win-win’ situation for the people, but also for the automakers who will get to enjoy huge dividends.