Toyota Pakistan has emerged with impressive financial results for the first half of the fiscal year 2024, as announced today. The company posted a profit after tax of Rs. 4.95 billion, marking a substantial 89 percent increase Year-on-Year (YoY).
This robust performance underscores the resilience and adaptability of the company despite the challenging market conditions.
Profitability Highlights
In the second quarter of FY24, the company’s profitability soared to Rs. 1.74 billion, up by 31 percent compared to the same period last year. Moreover, Indus Motors declared a cash dividend of Rs. 13.2 per share, amounting to Rs. 37.70 per share for the first half of FY24, a move likely to bolster investor confidence.
However, amidst the remarkable profitability, there was a notable decline in net sales during 1HFY24, which stood at Rs. 50.910 billion, representing a significant 41 percent decrease YoY. This decrease was further pronounced in the second quarter, with net sales plummeting by 63 percent YoY and 44 percent Quarter-on-Quarter (QoQ).
The primary driver behind this decline was the reduction in volumetric sales, particularly evident in the sales of Fortuner and Hilux, which dropped by a staggering 83 percent YoY.
Despite the challenging sales figures, Indus Motors managed to improve its gross margins significantly. During 1HFY24, gross margin stood at 9.3 percent, a stark contrast to the -3.3 percent reported during the same period last year.
Toyota Pakistan’ Rs. 3 billion Investment
Indus Motor Company Limited (INDU) is making significant strides towards enhancing the localization of parts and components for its vehicles with a substantial investment of around Rs. 3 billion. This strategic move, approved by the Board of Directors, underscores the company’s commitment to reducing the outflow of foreign exchange and bolstering the local auto industry.
The investment will primarily focus on expanding the localization of various existing vehicle models, aligning with the company’s long-term objectives.
It encompasses expenditures in plant infrastructure, machinery, molds, dies, and associated expenses essential for localizing parts and components production. The targeted completion by the third quarter of 2025 indicates a diligent timeline for implementation.
