The Toyota Indus Motor Company (IMC) profit soared by 195% to Rs. 5.42 billion in the first quarter ended on September 30, 2021, due to an increase in net sales and other income.
The increase in profitability was due to improved economic activity in the country with a steady policy rate and measures to expand the auto sector.
According to a notice sent to the Pakistan Stock Exchange, the car manufacturer had posted a profit of Rs. 1.84 billion in the corresponding period of the previous year.
Alongside its result, the company also announced a cash dividend of Rs. 34.5 per share.
The net sales for the first quarter increased by 92% to Rs. 65.55 billion compared to Rs. 34.14 billion recorded in the same period last year mainly due to a 54% increase in unit sales.
During the year, the sales volume of CKD vehicles increased by 59.16% to 18,646 units against 11,715 units sold in the same period last year. Besides, the company also managed to sell higher CBUs.
Other income of the company saw an increase of 88% to Rs. 2.04 billion as compared to Rs. 1.08 billion due to higher cash balance from increased order intake. Earnings per share of the company increased to Rs. 69.02 from Rs. 23.48.
Toyota IMC remains on the favorable end of the spectrum in terms of quarterly earnings due in large part to the sales of its two sedans namely the Corolla and Yaris. On a monthly basis, Toyota IMC sells around 2,000 of both sedans, which plays a huge role in bolstering its earnings.
The long-term plans of the company are aimed towards capitalizing on a huge market gap, that is, the hybrid vehicle segment, which will allow the company to become even more profitable in the future.