Toyota Indus Motor Company (IMC) has announced its financial results for the nine months ended on March 31, 2022 (FY22).
The company posted a profit of Rs. 15.29 billion during the period, up by 82 percent compared to a profit of Rs. 8.45 billion in the same period last year. Along with the results, the company also announced an interim cash dividend of Rs. 26 per share.
The increase in turnover and profitability for the nine-month period was mainly due to higher sales volume and an increase in other income.
The net sales for the nine months ended March 31, 2022 grew by 55 percent to Rs. 203.40 billion as compared to Rs.131.16 billion in the same period last year amid a series of upward revisions in car prices together with higher volumetric sales.
Gross margins of the company stood at 8.64 percent, up by 44bps given the passed-on prices, which have largely absorbed the impact of rising cost pressure Amid higher cost pressure which mainly includes freight cost and steel prices together with significant rupee devaluation.
Other income of the company doubled to Rs. 7.73 billion from Rs. 3.89 billion due to advances from customers and elevated interest rates.
Earnings per share of the company increased to Rs. 65.11 from Rs. 45.98. INDU’s scrip at the bourse closed at Rs. 1,347, down by Rs. 24.5 or 1.79 percent, with a turnover of 16,092 shares on Tuesday
Toyota IMC has had steady sales in the past few months, which contributed to its profit. The company sold around 7,000 units a month several times last year, with Toyota Yaris being its top seller. Toyota IMC also benefitted from comparatively better delivery times compared to those of its competitors.
However, Toyota IMC’s CEO Ali Asghar Jamali has predicted that the impending price hikes will hurt the vehicle demand. Toyota has already revised the price of its vehicles twice this year, and also had to suspend its bookings for a brief time.
This could impact the company’s sales and subsequently, its profit margins in the coming days.
