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Toyota Indus Motors Posts 89% Profit Growth in First 6 Months of FY24

Indus Motors Company Limited (PSX: INDU) announced its financial result for 1HFY24 today. posting a profit after tax of Rs. 4.95 billion, up by 89 percent YoY.

During 2QFY24 the profitability of the company was recorded at Rs. 1.74 billion compared to a profit of Rs. 1.33 billion in 2QFY23, up by 31 percent YoY.

Alongside the result, the company announced a cash dividend of Rs. 13.2/share (Rs. 37.70/share in 1HFY24).

Net sales during 1HFY24 clocked in at Rs. 50.910 billion in contrast to Rs. 86.8 billion in SPLY, plummeting by 41 percent YoY. During 2QFY24, net sales declined by 63 percent YoY | 44 percent QoQ. According to Arif Habib Limited, this was due to lower volumetric sales (-72 percent YoY) with a major reduction coming in sales of Fortuner and Hilux (-83 percent YoY).

During 1HFY24 gross margin arrived at 9.3 percent, in contrast to -3.3 percent during SPLY mainly due to a stable PKR/USD parity and a decline in raw material cost i.e.; steel. On a quarterly basis, the gross margins settled at 7.8 percent during 2QFY24 compared to -1.0 percent in SPLY, due to the reasons mentioned above.

Distribution expense rose by 94 percent YoY settling at 654 million during 2QFY24, This rise can be attributed to an upsurge in marketing expenses associated with the Corolla Cross.

Other income declined by 28 percent YoY to clock in at PKR 2,494mn in 2QFY24, mainly due to a decline in short-term investments, resulting in lower interest income.

The company booked effective taxation at 28 percent in 2QFY24 vis-à-vis 31 percent in 2QFY23.

The company’s board has approved an investment of Rs. 3 billion for the purpose of incremental localization of parts and components of CKDs being assembled by the company. Furthermore, the company plans to complete the investment by 3QCY25.

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