After Pak Suzuki recorded a massive down in sales, Toyota Indus Motor Company (IMC) is facing the same fortune. Again, the car price hike saga and import restriction introduced by the State Bank of Pakistan are held responsible for the prevailing rampage in the local industry.
Reports have disclosed that Toyota Pakistan has reported a profit of Rs. 1.297 billion for the first quarter of the fiscal year 2022-23, recently concluded on September 30, compared to the profit of Rs. 5.42 billion earned in the corresponding period of last year. Meaning, the company witnessed a big loss – profit declined by 76%.
Moreover, company net sales also faced shattered trends – decreased by 43% – clocked in at Rs. 37.24 billion – against Rs. 65.5 billion. Coming to year-on-year sales charts, the company reported a slump of 51%. Also, Toyota IMC announced an interim cash dividend of Rs. 8.2 per share.
Reports revealed that along with increasing car prices, a jump in compensation in advance from customers hit the company hard during tough times. However, other income of the company marked a considerable growth of 152% – clocked in at Rs. 5.16 billion compared to Rs. 2.04 billion in the same of last year.
Pak Suzuki Observes Biggest Ruin In 3 Months
Pak Suzuki Motor Company Limited (PSMC) has reported that it suffered a loss after tax of Rs. 2.48 billion for the third quarter that ended on September 30, 2022. The company further informed that it faced a loss of Rs. 2.50 billion in the last nine months this year. Pak Suzuki earned a profit of Rs. 993 million in the corresponding period of last year. And primarily, the reason behind the fuss is back-breaking car prices and finance costs.
Low volume of sales and relentless car prices led to slumping demand, paddled the sales some way back. The company’s sales witnessed a drop of 41 percent – clocked in at Rs. 29.80 against 50.26 billion. Following the trend, the gross profit of the company declined from Rs. 2.66 billion recorded last year to Rs. 1.56 billion this year – decreased by 41%.
