Pakistan’s second largest automobile manufacturer, Toyota Indus Motor Company (IMC), has reported a massive profit of Rs 3.6 billion during the first quarter. The company shared the data in its financial results for the first quarter of 2021.
Revenue Increase
According to the notice sent to the Pakistan Stock Exchange (PSX), Toyota Indus Motor had posted 34.9% more profit than the corresponding quarter of 2020, when the profit number was Rs 2.7 billion. Accordingly, Toyota’s earnings per share came in at Rs 45.98 in Jan-March 2021 compared to Rs 34.09 in Jan-March 2020.
Toyota’s total sales for this quarter stood at Rs 51.5 billion. Compared to the sales of Rs. 33 billion in the first quarter of 2020, there’s a jump of 55.8%.
Gross Margins of Toyota Indus
The company’s gross margins increased by 98ppt on quarter-on-quarter due to the appreciation of Pakistani rupee against the US dollar. Gross margins came down by 292ppt on a year-on-year basis due to an increase in prices of raw material and higher freight cost.
Finance Cost
The finance cost of Toyota Indus has settled at Rs 21.2 million. Compared to the finance cost of Rs 16.3 million in the first quarter of last year, the number has increased by 30.7%.
2021 has been a great year for all the old as well as new automakers of Pakistan. Pak Suzuki records 106% more revenue in the first quarter of 2021 than the same quarter of 2020. The main reasons for the massive profit are the increased auto demand in the country and the favourable rupee-dollar rate.
We hope that things go in favour of auto manufacturers, but also the consumer. With the skyrocketing car prices in Pakistan, we don’t see that happening right now. However, with the new entrants bringing their latest and greatest cars in Pakistan, consumers are getting more choices than ever. If the Big 3 don’t play it smart, their monopoly will fall down somewhere in the longer run.
