Toyota Indus Motor Company (IMC) has reported massive profit growth in the first quarter of the fiscal year 2020-2021. According to financial results, the company has posted a profit of Rs1.84 billion in the first quarter, up by 40.50%, as compared to the profit of Rs1.31 billion in the same period last year.
Furthermore, the company also announced a cash dividend of Rs 12 per share.
The data showed that IMC’s combined sales of complete built-up (CBU) and complete knocked down (CKD) units for the quarter increased by 73%. The company sold 11,809 vehicles against 6,839 units sold in the same period the previous year. The company also held 27% share of overall market during first quarter of FYI 20-21.
Net Sales of Toyota:
Additionally, the company’s net sales for the quarter have increased by 65% to Rs34.19 billion against Rs20.72 billion in the same period the previous year.
However, due to the depreciation of Pakistani rupee and absorption of costs, the gross margin of the company reduced by 6.7% against 9.7% in the same period last year.
The reason behind this massive growth in profit and sales is majorly due to overwhelming response received for Toyota Yaris. Furthermore, IMC has recovered exceptionally well after the easing in restriction of COVID-19. According to the monthly report of PAMA, Toyota has seen Year on Year sales increase by 106% and Month on Month sales by 32% in September 2020.
Due to the high demand of its vehicles, the company has announced to revert back to the double-shift production schedule. IMC is taking the step to meet the rising demand by local consumers. Moreover, the company has planned to increase its annual production to 80,000 units a year. The current capacity of of IMC is 66,000 vehicles annually.