Toyota Indus Motor Company (IMC) Limited has announced its financial results for the half-year that ended on December 31st, 2022.
The company posted a profit of Rs. 2.6 billion in July-December of the financial year 2022-23, a 74 percent drop from Rs. 10.2 billion in the same period last year.
Meanwhile, the automaker decreased its quarterly earnings in October-December (2QFY23), ending the quarter with a profit after tax of Rs. 1.33 billion, down 72 percent year-on-year (YoY) from Rs. 4.7 billion last year. On a quarter-on-quarter (QoQ) basis, the PAT for the quarter is up 3 percent.
Along with the result, the company has announced an interim cash dividend of Rs. 10.2 per share.
During the half year, the net sales of the company decreased by 36 percent YoY to Rs. 86.8 billion from Rs. 135 billion. During 2QFY23, the topline showed a 29 percent YoY drop where sales decreased from Rs. 69.6 billion to Rs. 49.6 billion. On a QoQ basis, sales showed a 33 percent increase from 1QFY23. According to Arif Habib Limited (AHL), the drop was due to low volumetric sales due to high car prices, inflation, and the low purchasing power of consumers.
Gross margins clocked in at -1 percent in 2QFY23 compared to 7.6 percent SPLY due to low sales, high raw material costs, and observation of 11 non-production days due to raw-material (CKD) shortage.
Other income fell by 33 percent QoQ to Rs. 3.45 billion amid a contraction in cash and cash equivalents. For the half year, the other income increased by 89 percent YoY from Rs. 4.5 billion last year to Rs. 8.6 billion in July-December FY23.
Meanwhile, the effective tax rate clocked in at 31 percent in 2QFY23, compared to 26.3 percent in 2QFY22.
For the half year, Toyota IMC posted earnings of Rs. 33.4 per share as compared to Rs. 129.5 per share in 1HFY22.
At the time of filing, the company’s scrip at the bourse was Rs. 861, up 0.7 percent or Rs. 5.99, with a turnover of 11,213 shares on Monday.
Delivery Issues and Sales Crash
Toyota Indus Motor Company (IMC) had previously announced non-production days (NPDs) in order to accommodate sluggish CKD imports. Recent reports indicate that IMC is offering a full refund plus a markup to customers who recently booked a car.
Ali Asghar Jamali, CEO of Toyota IMC, said that the collapsing economy and production pauses are causing a drying up the sales and revenue. The overall situation is damaging the industry badly.
The industry on the whole has shared the same reservations with the government and demanded the resumption of CKD imports to keep their businesses afloat.
Toyota Should lanch mini SUV jeep Rush to compete with Suzuki jimmny and hatch back vehicles in Pakistan for increasing sale and profit.
Very good