Toyota Indus Motor Company (IMC) Limited reported a profit of Rs. 3.21 billion for the fiscal year 2022-23, which ended on March 31, down 37.1 percent from a profit of Rs. 5.11 billion in the same period last year.
Meanwhile, according to Arif Habib Limited (AHL), the carmaker’s profit grew by 142 percent on a quarter-on-quarter (QoQ) basis, owing to a 730 basis point improvement in gross margins, which resulted in an operational profit after two consecutive quarterly operating losses in FY22.
Toyota’s Sales
In addition to the results, the corporation has declared an interim cash dividend of Rs. 24.4 per share. The company’s net sales fell by 29 percent to Rs. 48.19 billion from Rs. 68.2 billion, owing mostly to lower volumetric sales.
Massive inflationary pressures, which harmed customer purchasing power, posed further hurdles for the corporation.
Following two consecutive quarters of negative gross margins, gross margins rebounded to the green zone, reaching 6.3 percent as opposed to -1.0 percent in the previous quarter.
According to Ismail Iqbal Securities, this can be attributable to the company’s several price increases during the quarter to battle cost constraints.
Other income for the company was reported at Rs. 3.03 billion, a 5% decrease from Rs. 3.18 billion in the same time last year.
On a quarterly basis, it declined by 12%, most likely due to a decrease in cash and cash equivalents. The company had an effective tax rate of 33.5 percent, up from 27.6 percent in 3QFY22.
Profits at the carmaker have fallen by 62 percent year on year to Rs. 5.84 billion in the first nine months of FY2023.
The topline also ended in the negative, with a 33.6 percent drop from Rs. 203.4 billion in 9MFY22 to Rs. 135 billion in 9MFY23.
During the nine-month period, the company’s other income increased by 50.7 percent to Rs. 11.6 billion. Toyota IMC reported 3QFY23 earnings per share (EPS) of Rs. 40.92 and 9MFY23 EPS of Rs. 74.35.
The company’s scrip at the time of reporting was Rs. 955, up 3.17 percent or Rs. 29.35, with a turnover of 3,497 shares on Wednesday.
Toyota IMC has seen tremendous sales growth, notably in the mid-to-high-end automobile classes.
Toyota sold 1,912 vehicles in March, a 6% increase over the previous month. The robust sales of Toyota Hilux, Fortuner, and Corolla can be ascribed to the increase. The aforementioned vehicles range in price from over Rs. 6.1 million to Rs. 21 million.
As a result, even though volumetric sales were not remarkable, Toyota IMC was able to sustain a profit because to strong high-end car sales and a better manufacturing schedule than its key competitors.
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