Toyota Indus Motor Company (IMC) has announced its financial results for the nine months ended on March 31, 2021 (FY21).
The company posted a profit of Rs. 8.42 billion during the period, up by 69% compared to a profit of Rs. 4.98 billion in the same period last year. Along with the result, the company also announced a cash dividend of Rs. 30 per share. This is an addition to the combined interim cash dividend of Rs. 37 per share already paid.
The net sales for the nine months ended March 31, 2021 was increased by 73% to Rs. 131.16 billion as compared to Rs.75.83 billion in the same period last year. The increase in turnover and profitability for the nine-month period was mainly due to higher sales volume and an increase in other income.
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The gross profit margin declined to 8.2% against 10.3% in the same period last year, mainly on account of an increase in material cost.
The Company’s combined sales of Complete Knocked Down (CKD) and Complete Built-up (CBU) units for the quarter ended March 31, 2021, increased by 48.3% to 16,626 units as against 11,209 units sold in the same quarter last year. Moreover, sales for the nine-month period ended March 31, 2021, increased by 67.5% to 42,988 units as against 25,662 units sold in the same period last year.
Expressing his views, CEO IMC, Ali Asghar Jamali, said, “I am glad to see that business is returning to some state of normalcy. In fact, March 2021 saw the highest ever production levels at IMC, as a consequence of marked improvements in the global supply chain.”
He further added, “IMC has always emphasized the ‘Make in Pakistan’ approach and appreciates the Government’s efforts to promote this policy. We request the Government to draw up the new Auto Policy 2021 – 2026 that encourages incentives to promote HEV technology in addition to incentives currently offered for Electric Vehicles, as well as localization that generates employment not only for OEMs but for auto parts-makers as well.”
INDU’s scrip at the bourse was closed at 1,084.83, down by Rs. 0.17 or 0.02%, with a turnover of 15,000 shares on Thursday.
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Auto-Industry Perspective
For the past several months, Toyota has constantly been posting month-on-month growth in the sales figures, which is due in large part to the outstanding sales of the recently released Toyota Yaris.
Initially, the fate of Toyota’s new offering seemed a bit uncertain, as it had replaced the wildly popular Toyota Corolla XLI and GLI trims, and was seemingly a step-down, especially in terms of looks. However, its features, ride quality, and of course, the reliability and resale value that comes with the Toyota badge won the customers over and the new Yaris has become just as, if not more popular than its predecessor.
To put things into context, for the past several months, Yaris has consecutively been outselling both Honda City and Civic put together, which is a huge achievement for a relative newcomer. With the demand of the Yaris in the market showing no signs of slowing down, future seems promising for Toyota IMC.
