Profit increases by 152%
Indus Motor Company Limited, commonly known as Toyota as it assembles and sells Toyota cars in Pakistan, has reported its highest-ever sales in terms of revenue and a 152% increase in its annual profits for the financial year 2021.
Toyota sold 57,236 vehicles during the year that helped the company improve revenues to Rs179.2 billion. It earned Rs12.8 billion during the year, which was 152% higher than last year.
“We have had a very good year despite the frequent challenges arising owing to COVID-19 pandemic,” said Chief Executive, Ali Asghar Jamali.
Earnings per share during the was Rs163 in FY2021 as compared to Rs65 in FY2020. The company has also announced a total of Rs103 dividend in FY2021.
However, despite the highest revenue in the financial year 2021, the company’s profit was well below its previous high.
“Company’s previous high revenue came in FY 2019 with Rs158 billion,” said Research Analyst Taha Madani. “But the company’s highest profits came in FY 2018 at Rs15.8 billion.”
The company’s highest ever volumetric sales (number of cars sold) in FY 2019 with 65399 units.
“But dollar started to devalue in 2018 and its full impact came in FY 2019 for the auto sector. Auto companies’ profit margin fell due to dollar devaluation back then,” Madani said.
According to the company, the increase in high sales and profitability for the year was mainly due to higher sales of assembled and imported (CBU) Toyota cars by the company.
“Selling of higher number of cars was primarily due to improved economic conditions and healthy demand generated on account of launch of the facelift models of Corolla, Hilux and Fortuner along with wider acceptance of Toyota Yaris,” the company added.
IMC CEO Jamali praised the government for reducing Federal Excise Duty and Additional Custom Duty.
“The decrease in duties and taxes resulted in reduction in prices of vehicles in July 2021, which will eventually boost the industry to continue positive momentum,” he added.